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ABRPC.PFD (Arbor Realty Trust) Financial Strength : 3 (As of Sep. 2024)


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What is Arbor Realty Trust Financial Strength?

Arbor Realty Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Arbor Realty Trust Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Arbor Realty Trust's interest coverage with the available data. Arbor Realty Trust's debt to revenue ratio for the quarter that ended in Sep. 2024 was 12.17. Altman Z-Score does not apply to banks and insurance companies.


Arbor Realty Trust Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Arbor Realty Trust's Interest Expense for the months ended in Sep. 2024 was $-197.71 Mil. Its Operating Income for the months ended in Sep. 2024 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $7,083.96 Mil.

Arbor Realty Trust's Interest Coverage for the quarter that ended in Sep. 2024 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Arbor Realty Trust's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(544.846 + 7083.962) / 626.612
=12.17

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Arbor Realty Trust  (NYSE:ABRpC.PFD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Arbor Realty Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Arbor Realty Trust Financial Strength Related Terms

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Arbor Realty Trust Business Description

Traded in Other Exchanges
Address
333 Earle Ovington Boulevard, Suite 900, Uniondale, NY, USA, 11553
Arbor Realty Trust Inc is a specialized real estate finance company. It invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets, consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred, and direct equity. In addition, it may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. The company has two business segments, Structured Business and Agency Business. It generates a majority of its revenue from the Structured Business Segment. The company is externally managed and advised by Arbor Commercial Mortgage, LLC.