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GPMTPA.PFD (Granite Point Mortgage Trust) Financial Strength : 2 (As of Mar. 2025)


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What is Granite Point Mortgage Trust Financial Strength?

Granite Point Mortgage Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Granite Point Mortgage 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 rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate Granite Point Mortgage Trust's interest coverage with the available data. Granite Point Mortgage Trust's debt to revenue ratio for the quarter that ended in Mar. 2025 was 21.28. Altman Z-Score does not apply to banks and insurance companies.


Granite Point Mortgage 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:

Granite Point Mortgage Trust's Interest Expense for the months ended in Mar. 2025 was $-27.10 Mil. Its Operating Income for the months ended in Mar. 2025 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $773.29 Mil.

Granite Point Mortgage Trust's Interest Coverage for the quarter that ended in Mar. 2025 is

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

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

Granite Point Mortgage Trust's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(86.774 + 773.29) / 40.412
=21.28

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.


Granite Point Mortgage Trust  (NYSE:GPMTpA.PFD) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Granite Point Mortgage Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Granite Point Mortgage Trust Financial Strength Related Terms

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Granite Point Mortgage Trust Business Description

Traded in Other Exchanges
Address
3 Bryant Park, Suite 2400A, New York, NY, USA, 10036
Granite Point Mortgage Trust Inc focuses on directly originating, investing in, and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. The company constructs its investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity, and diversification, and assesses each investment from a fundamental value perspective relative to other opportunities available in the market. It typically provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing, and a range of business plans, including lease-up, renovation, repositioning and repurposing of the property.