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Duke Realty Financial Strength

: 4 (As of Sep. 2019)
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Duke Realty has the Financial Strength Rank of 4.

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.

Duke Realty's Interest Coverage for the quarter that ended in Sep. 2019 was 2.97. Duke Realty's debt to revenue ratio for the quarter that ended in Sep. 2019 was 11.47. As of today, Duke Realty's Altman Z-Score is 2.71.


Competitive Comparison
* 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.


Duke Realty Financial Strength Distribution

* The bar in red indicates where Duke Realty's Financial Strength falls into.



Duke Realty 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:

Duke Realty's Interest Expense for the months ended in Sep. 2019 was $-23 Mil. Its Operating Income for the months ended in Sep. 2019 was $67 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2019 was $2,768 Mil.

Duke Realty's Interest Coverage for the quarter that ended in Sep. 2019 is

Interest Coverage=-1*Operating Income (Q: Sep. 2019 )/Interest Expense (Q: Sep. 2019 )
=-1*67.151/-22.604
=2.97

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

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

Duke Realty's Debt to Revenue Ratio for the quarter that ended in Sep. 2019 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 2767.582) / 241.329
=11.47

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.

Duke Realty has a Z-score of 2.71, indicating it is in Grey Zones. This implies that Duke Realty is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.71 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Duke Realty  (NYSE:DRE) 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.

Duke Realty has the Financial Strength Rank of 4.


Duke Realty Financial Strength Related Terms


Duke Realty Financial Strength Headlines

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