What is Goodman Property Trust Financial Strength?
Goodman Property 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:
Goodman Property Trust 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.
Goodman Property Trust did not have earnings to cover the interest expense.
Goodman Property Trust's debt to revenue ratio for the quarter that ended in Mar. 2024 was 6.12.
As of today, Goodman Property Trust's Altman Z-Score is 1.78.
Competitive Comparison of Goodman Property Trust's Financial Strength
For the REIT - Industrial subindustry, Goodman Property Trust'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.
Goodman Property Trust's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Goodman Property Trust's Financial Strength distribution charts can be found below:
* The bar in red indicates where Goodman Property Trust's Financial Strength falls into.
Goodman Property 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:
Goodman Property Trust's Interest Expense for the
months ended in Mar. 2024 was NZ$-23.9 Mil. Its Operating Income for the
months ended in Mar. 2024 was NZ$-182.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was NZ$1,219.3 Mil.
Goodman Property Trust's Interest Coverage for the quarter that ended in Mar. 2024 is
| Goodman Property Trust did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Goodman Property Trust interest coverage is 4.84, which is low.
2. Debt to revenue ratio. The lower, the better.
Goodman Property Trust's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Goodman Property Trust has a Z-score of 1.78, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.78 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.
Goodman Property Trust (NZSE:GMT) Business Description
Traded in Other Exchanges
N/A
Address
The Hayesbery, 1-11 Hayes Road, Rosebery, Sydney, NSW, AUS, 2018
Goodman Property Trust is one of New Zealand's property trusts, with a portfolio composed of industrial estates, businesses, and a development bank. After selling its Christchurch assets, Goodman is 100% Auckland-centric. The focus over the next few years will be on selling lower-quality assets and redeploying capital to industrial property in strategically important locations. The investment strategy is premised on management's view that industrial assets in premium locations will generate superior long-term returns from lower average vacancy and higher rent growth.
Goodman Property Trust (NZSE:GMT) Headlines
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