Paramount Group (Paramount Group) Interest Coverage : 0.79 (As of Dec. 2023)

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What is Paramount Group 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. Paramount Group's Operating Income for the three months ended in Dec. 2023 was $30.9 Mil. Paramount Group's Interest Expense for the three months ended in Dec. 2023 was $-39.0 Mil. Paramount Group's interest coverage for the quarter that ended in Dec. 2023 was 0.79. The higher the ratio, the stronger the company's financial strength is.

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

PGRE' s Interest Coverage Range Over the Past 10 Years
Min: 0.49 Med: 1.09 Max: 1.28
Current: 0.93

PGRE's Interest Coverage is ranked worse than
89.5% of 676 companies
in the REITs industry
Industry Median: 2.985 vs PGRE: 0.93

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

Paramount Group Interest Coverage Historical Data

The historical data trend for Paramount Group'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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Paramount Group Interest Coverage Chart

Paramount Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.24

1.09

1.28

1.24

0.93

Paramount Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.09	1.28	0.64	1.01	0.79

Competitive Comparison of Paramount Group's Interest Coverage

For the REIT - Office subindustry, Paramount Group'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.

Paramount Group's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Paramount Group's Interest Coverage falls into.

Paramount Group 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.

Paramount Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Paramount Group's Interest Expense was $-146.8 Mil. Its Operating Income was $136.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,803.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	136.193	/	-146.771
	=	0.93

Paramount Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Paramount Group's Interest Expense was $-39.0 Mil. Its Operating Income was $30.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,803.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	30.85	/	-38.961
	=	0.79

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

Paramount Group (NYSE:PGRE) 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 .

Paramount Group Interest Coverage Related Terms

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

Paramount Group (Paramount Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Paramount Group Inc (NYSE:PGRE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

6PM:Germany

Address

1633 Broadway, Suite 1801, New York, NY, USA, 10019

Website

https://www.pgre.com

Paramount Group Inc is a real estate investment trust engaged in owning, operating, managing, acquiring, and redeveloping high-quality, Class A office properties in select central business district ("CBD") submarkets of New York City and San Francisco. The company operates in two geographical segments New York and San Francisco. Paramount Group derives nearly all of its revenue in the form of rental income from leasing its offices to tenants. The company's New York City assets generate the majority of its total revenue.

Executives

Albert P. Behler	director, officer: Chairman, CEO and President	PARAMOUNT GROUP, INC., 1633 BROADWAY, SUITE 1801, NEW YORK NY 10019
Gage R. Johnson	officer: SVP, GC and Secretary	PARAMOUNT GROUP, INC., 1633 BROADWAY, NEW YORK NY 10018
Thomas Armbrust	director	WERNER OTTO STRASSE 1-7, D-22179 HAMBURG 2M D-22179
Martin Bussmann	director	C/O PARAMOUNT GROUP, INC., 1633 BROADWAY, SUITE 1801, NEW YORK NY 10019
Paula Sutter	director	969 BROADWAY, SUITE 200, OAKLAND CA 94607
Hitoshi Saito	director	PARAMOUNT GROUP, INC., 1633 BROADWAY, SUITE 1801, NEW YORK NY 10019
Ermelinda Berberi	officer: See Remarks	1633 BROADWAY, SUITE 1801, NEW YORK NY 10019
Gregory S Wright	director	FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Katharina Otto-bernstein	director, 10 percent owner	C/O KG CURA VERMOGENSVERWALTUNG G.M.B.H., WANDSBEKER STR. 3-7, HAMBURG 2M 22179
Alexander Otto	10 percent owner	C/O KG CURA VERMOGENSVERWALTUNG G.M.B.H., WANDSBEKER STR. 3-7, HAMBURG 2M 22179
Maren Otto	10 percent owner	WERNER-OTTO-STR. 1-7, HAMBURG 2M D-22179
Dyer Colin	director	JONES LANG LASALLE INCORPORATED, 200 EAST RANDOLPH DRIVE, CHICAGO IL 60601
David Zobel	officer: See Remarks	144 E. 84TH STREET #6D, NEW YORK NY 10028
Mark R Patterson	director	40 MINNISINK ROAD, SHORT HILLS NJ 07078
Brindley Peter R.c.	officer: EVP, Leasing	1633 BROADWAY, SUITE 1801, NEW YORK NY 10019