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Forest City Realty Trust (Forest City Realty Trust) Financial Strength : 0 (As of Sep. 2018)


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What is Forest City Realty Trust Financial Strength?

Forest City Realty Trust has the Financial Strength Rank of 0.

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.

Forest City Realty Trust's Interest Coverage for the quarter that ended in Sep. 2018 was 1.59. Forest City Realty Trust's debt to revenue ratio for the quarter that ended in Sep. 2018 was 4.04. As of today, Forest City Realty Trust's Altman Z-Score is 0.00.


Competitive Comparison of Forest City Realty Trust's Financial Strength

For the REIT - Retail subindustry, Forest City Realty 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.


Forest City Realty Trust's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Forest City Realty Trust's Financial Strength distribution charts can be found below:

* The bar in red indicates where Forest City Realty Trust's Financial Strength falls into.



Forest City 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:

Forest City Realty Trust's Interest Expense for the months ended in Sep. 2018 was $-30.9 Mil. Its Operating Income for the months ended in Sep. 2018 was $49.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2018 was $3,529.8 Mil.

Forest City Realty Trust's Interest Coverage for the quarter that ended in Sep. 2018 is

Interest Coverage=-1*Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*49.169/-30.87
=1.59

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

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

Forest City Realty Trust's Debt to Revenue Ratio for the quarter that ended in Sep. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 3529.756) / 872.92
=4.04

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.

Forest City Realty Trust has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Forest City Realty Trust  (NYSE:FCE.B) 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.

Forest City Realty Trust has the Financial Strength Rank of 0.


Forest City Realty Trust Financial Strength Related Terms

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Forest City Realty Trust (Forest City Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
Forest City Realty Trust Inc is engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. The company's segments include the Commercial Group, Residential Group, Land Development Group and Corporate Activities. It operates mixed-use projects such as residential rental properties, regional malls, specialty/urban retail centers, office and life science buildings and others. In addition, it also engaged in acquiring and sale of both land and developed lots to residential, commercial and industrial clients. Revenue for the group is derived from the source of rental, service and management fees and land sales.