Taubman Centers (Taubman Centers) Interest Coverage : 0.72 (As of Sep. 2020)

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What is Taubman Centers Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Taubman Centers's Operating Income for the three months ended in Sep. 2020 was $23.94 Mil. Taubman Centers's Interest Expense for the three months ended in Sep. 2020 was $-33.05 Mil. Taubman Centers's interest coverage for the quarter that ended in Sep. 2020 was 0.72. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Taubman Centers Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Taubman Centers's Interest Coverage or its related term are showing as below:

TCOpJ.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.81 Med: 1.81 Max: 3.11
Current: 0.81

TCOpJ.PFD's Interest Coverage is not ranked
in the REITs industry.
Industry Median: 2.97 vs TCOpJ.PFD: 0.81

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Taubman Centers Interest Coverage Historical Data

The historical data trend for Taubman Centers's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Taubman Centers Interest Coverage Chart

Taubman Centers Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Interest Coverage

Get a 7-Day Free Trial

3.11

2.13

1.33

1.24

1.11

Taubman Centers Quarterly Data
	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
Interest Coverage	Get a 7-Day Free Trial															1.11	1.20	1.22	0.04	0.72

Competitive Comparison of Taubman Centers's Interest Coverage

For the REIT - Retail subindustry, Taubman Centers's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Taubman Centers's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Taubman Centers's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Taubman Centers's Interest Coverage falls into.

Taubman Centers Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Taubman Centers's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Taubman Centers's Interest Expense was $-148.41 Mil. Its Operating Income was $165.17 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,951.11 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2019 )	/	Interest Expense (A: Dec. 2019 )
	=	-1	*	165.168	/	-148.407
	=	1.11

Taubman Centers's Interest Coverage for the quarter that ended in Sep. 2020 is calculated as

Here, for the three months ended in Sep. 2020, Taubman Centers's Interest Expense was $-33.05 Mil. Its Operating Income was $23.94 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,138.13 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2020 )	/	Interest Expense (Q: Sep. 2020 )
	=	-1	*	23.938	/	-33.052
	=	0.72

The higher the ratio, the stronger the company's Financial Strength is.

Taubman Centers (NYSE:TCOpJ.PFD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Taubman Centers Interest Coverage Related Terms

Thank you for viewing the detailed overview of Taubman Centers's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Taubman Centers (Taubman Centers) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Taubman Centers Inc (NYSE:TCOpJ.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

200 East Long Lake Road, Suite 300, Bloomfield Hills, MI, USA, 48304-2324

Website

http://www.taubman.com

Taubman Centers Inc is engaged in the ownership, leasing, acquisition, disposition, development, expansion, and management of shopping centers. The company owns or operates a collection of over 20 urban and suburban shopping centers in U.S. states, Puerto Rico, South Korea, and China. Some of the operating malls of the group are Cherry Creek Shopping center, City Creek Center, Dolphin Mall, Fair Oaks Mall, and Stamford Town Center. Taubman derives its revenue by offering its properties on lease.