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Apple Hospitality REIT (MEX:APLE) Financial Strength : 5 (As of Mar. 2025)


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What is Apple Hospitality REIT Financial Strength?

Apple Hospitality REIT has the Financial Strength Rank of 5.

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.

Apple Hospitality REIT's Interest Coverage for the quarter that ended in Mar. 2025 was 2.44. Apple Hospitality REIT's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.26. As of today, Apple Hospitality REIT's Altman Z-Score is 0.96.


Competitive Comparison of Apple Hospitality REIT's Financial Strength

For the REIT - Hotel & Motel subindustry, Apple Hospitality REIT's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Apple Hospitality REIT's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Apple Hospitality REIT's Financial Strength distribution charts can be found below:

* The bar in red indicates where Apple Hospitality REIT's Financial Strength falls into.


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Apple Hospitality REIT 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:

Apple Hospitality REIT's Interest Expense for the months ended in Mar. 2025 was MXN-397 Mil. Its Operating Income for the months ended in Mar. 2025 was MXN968 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was MXN30,664 Mil.

Apple Hospitality REIT's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*967.714/-396.828
=2.44

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

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

Apple Hospitality REIT'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
=(3027.814 + 30664.325) / 26816.772
=1.26

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.

Apple Hospitality REIT has a Z-score of 0.96, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.96 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Apple Hospitality REIT  (MEX:APLE) 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.

Apple Hospitality REIT has the Financial Strength Rank of 5.


Apple Hospitality REIT Financial Strength Related Terms

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Apple Hospitality REIT Business Description

Traded in Other Exchanges
Address
814 East Main Street, Richmond, VA, USA, 23219
Apple Hospitality REIT Inc is a real estate investment trust that invests in income-producing real estate, majorly in the lodging sector, in the United States. It chiefly invests in upscale service hotels. All of the company's hotels operate under the Marriott or Hilton brands. Apple Hospitality has wholly-owned taxable REIT subsidiaries, which lease all of the company's hotels from wholly-owned qualified REIT subsidiaries. These hotels are managed under separate agreements with various hotel management companies that are unaffiliated with Apple Hospitality. The company derives its income from hotel revenue, its sole segment.