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Ashford Hospitality Trust Financial Strength

: 2 (As of Jun. 2021)
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Ashford Hospitality 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:

Ashford Hospitality 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.

Ashford Hospitality Trust did not have earnings to cover the interest expense. Ashford Hospitality Trust's debt to revenue ratio for the quarter that ended in Jun. 2021 was 5.13. As of today, Ashford Hospitality Trust's Altman Z-Score is -0.67.


Competitive Comparison

For the REIT - Hotel & Motel industry, Ashford Hospitality 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.

   

Ashford Hospitality Trust Financial Strength Distribution

For the REIT - Hotel & Motel industry and Real Estate sector, Ashford Hospitality Trust's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ashford Hospitality Trust's Financial Strength falls into.



Ashford Hospitality 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:

Ashford Hospitality Trust's Interest Expense for the months ended in Jun. 2021 was $-35.7 Mil. Its Operating Income for the months ended in Jun. 2021 was $-36.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $3,968.1 Mil.

Ashford Hospitality Trust's Interest Coverage for the quarter that ended in Jun. 2021 is

Ashford Hospitality Trust did not have earnings to cover the interest expense.

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

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

Ashford Hospitality Trust's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 3968.071) / 773.648
=5.13

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.

Ashford Hospitality Trust has a Z-score of -0.67, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.67 is in distress zone. 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.


Ashford Hospitality Trust  (NYSE:AHT) 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.

Ashford Hospitality 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.


Ashford Hospitality Trust Financial Strength Related Terms

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Ashford Hospitality Trust Business Description

Ashford Hospitality Trust logo
Industry
Real Estate » REITs NAICS : 531110 SIC : 6798
Address
14185 Dallas Parkway, Suite 1100, Dallas, TX, USA, 75254
Ashford Hospitality Trust Inc. is a real estate investment trust that invests in full-service upscale and upper-upscale hotel properties in the U.S. The company owns and operates its assets through its operating partnership, Ashford Hospitality Limited Partnership. All of its hotels are located across the U.S. and operate under the Marriott, Hilton, Hyatt, Crowne Plaza, and Sheraton brands. Ashford's sole segment is Direct Hotel Investments, through which it owns hotels by acquisition or development. Ashford also provides rest estate investment services, such as mezzanine financing, first mortgage financing, and sales-leaseback transactions. Its revenue streams include Room revenue, Food and beverage revenue, and Other revenue. Room revenue accounts for the majority of total revenue.
Executives
Gupta Amish director 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Ansell Benjamin J Md director 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Jafarnia Kamal director 7201 REGENCY COURT PLANO TX 75024
Pantermuehl Sheri L director PO BOX 2545 COPPER CREEK LANE CARROLLTON TX 75006
Tallis Alan director 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Kleisner Fred J director C/O MORGANS HOTEL GROUP CO. 475 TENTH AVENUE NEW YORK NY 10018
Kessler Douglas A officer: CEO and President 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Nunneley Mark officer: Chief Accounting Officer 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Eubanks Deric S officer: CFO and Treasurer 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Haiman Robert G. officer: Exec. VP, GC and Secretary 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Bennett Monty J director 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Welter Jeremy officer: Chief Operating Officer 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Hays J Robison Iii officer: Chief Strategy Officer 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Brooks David A officer: CTO, GC and Secretary 14185 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254
Payne Philip S director 3850 ONE FIRST UNION CENTER CHARLOTTE NC 28202

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