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Prologis Financial Strength

: 5 (As of Jun. 2022)
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Prologis has the Financial Strength Rank of 5.

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.

Prologis's Interest Coverage for the quarter that ended in Jun. 2022 was 7.09. Prologis's debt to revenue ratio for the quarter that ended in Jun. 2022 was 3.60. As of today, Prologis's Altman Z-Score is 3.21.


Competitive Comparison

For the REIT - Industrial subindustry, Prologis'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.

   

Prologis Financial Strength Distribution

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

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



Prologis 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:

Prologis's Interest Expense for the months ended in Jun. 2022 was $-60 Mil. Its Operating Income for the months ended in Jun. 2022 was $428 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $17,429 Mil.

Prologis's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*427.515/-60.293
=7.09

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

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

Prologis's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(612.267 + 17428.565) / 5008.32
=3.60

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.

Prologis has a Z-score of 3.21, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.21 is strong.

* 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.


Prologis  (NYSE:PLD) 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.

Prologis has the Financial Strength Rank of 5.


Prologis Financial Strength Related Terms

Thank you for viewing the detailed overview of Prologis's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Prologis Business Description

Prologis logo
Address
Pier 1, Bay 1, San Francisco, CA, USA, 94111
Prologis was formed by the June 2011 merger of AMB Property and ProLogis Trust. The company develops, acquires, and operates over 900 million square feet of high-quality industrial and logistics facilities across the globe. The company is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust.
Executives
Arndt Timothy D officer: Chief Financial Officer PIER 1, BAY 1 SAN FRANCISCO CA 94111
Modjtabai Avid director 420 MONTGOMERY STREET, 12TH FLOOR SAN FRANCISCO CA 94104
Hawkins Philip L director C/O CORPORATE OFFICE PROPERTIES TRUST 6711 COLUMBIA GATEWAY DRIVE, #300 COLUMBIA MD 21046
Bita Cristina Gabriela director C/O PROLOGIS, INC. PIER 1, BAY 1 SAN FRANCISCO CA 94111
Piani Olivier director C/O PROLOGIS, INC. PIER 1, BAY 1 SAN FRANCISCO CA 94111
Oconnor David P director C/O HIGH RISE 325 NORTH AVENUE E WESTFIELD NJ 07090
Curless Michael S officer: Chief Investment Officer 4545 AIRPORT WAY DENVER CO 80239
Anderson Gary E officer: CEO, Europe and Asia 4545 AIRPORT WAY DENVER CO 80239
Fotiades George L director 281 SUMMIT AVENUE SUMMIT NJ 07901
Lyons Irving F Iii director C/O ESSEX PROPERTY TRUST, INC. 925 E. MEADOW DRIVE PALO ALTO CA 94303
Sullivan William E officer: Chief Financial Officer JONES LANG LASALLE INCORPORATED 200 E RANDOLPH DR CHICAGO IL 60601
Palazzolo Lori A officer: SVP Chief Accounting Officer 4545 AIRPORT WAY DENVER CO 80239
Zollars William D director 10777 BARKLEY PO BOX 7563 OVERLAND PARK KS 66207-0563
Nekritz Edward S officer: Chief Legal Off./Gen. Counsel KATE MEADE 14100 E 35TH PL AURORA CO 80011
Steuert D Michael director C/O FLUOR CORP ONE ENTERPRISE DR ALISO VIEJO CA 92656

Prologis Headlines

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