Frasers Hospitality Trust (SGX:ACV) Interest Coverage : 3.35 (As of Sep. 2023)

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What is Frasers Hospitality Trust Interest Coverage?

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 by its Interest Expense. Frasers Hospitality Trust's Operating Income for the six months ended in Sep. 2023 was S$36.8 Mil. Frasers Hospitality Trust's Interest Expense for the six months ended in Sep. 2023 was S$-11.0 Mil. Frasers Hospitality Trust's interest coverage for the quarter that ended in Sep. 2023 was 3.35. 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. Frasers Hospitality Trust interest coverage is 3.67, which is low.

The historical rank and industry rank for Frasers Hospitality Trust's Interest Coverage or its related term are showing as below:

SGX:ACV' s Interest Coverage Range Over the Past 10 Years
Min: 2.12 Med: 4.14 Max: 5.32
Current: 3.67

SGX:ACV's Interest Coverage is ranked better than
59.61% of 671 companies
in the REITs industry
Industry Median: 2.98 vs SGX:ACV: 3.67

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Frasers Hospitality Trust Interest Coverage Historical Data

The historical data trend for Frasers Hospitality Trust's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Frasers Hospitality Trust Interest Coverage Chart

Frasers Hospitality Trust Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

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4.61

2.24

2.12

2.66

3.67

Frasers Hospitality Trust Semi-Annual Data
	Dec14	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial												2.21	2.39	2.95	4.05	3.35

Competitive Comparison of Frasers Hospitality Trust's Interest Coverage

For the REIT - Hotel & Motel subindustry, Frasers Hospitality Trust's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Frasers Hospitality Trust's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Frasers Hospitality Trust's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Frasers Hospitality Trust's Interest Coverage falls into.

Frasers Hospitality Trust Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Frasers Hospitality Trust's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Frasers Hospitality Trust's Interest Expense was S$-20.0 Mil. Its Operating Income was S$73.5 Mil. And its Long-Term Debt & Capital Lease Obligation was S$555.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	73.457	/	-20.017
	=	3.67

Frasers Hospitality Trust's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Frasers Hospitality Trust's Interest Expense was S$-11.0 Mil. Its Operating Income was S$36.8 Mil. And its Long-Term Debt & Capital Lease Obligation was S$555.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	36.786	/	-10.97
	=	3.35

The higher the ratio, the stronger the company's Financial Strength is.

Frasers Hospitality Trust (SGX:ACV) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Frasers Hospitality Trust Interest Coverage Related Terms

Thank you for viewing the detailed overview of Frasers Hospitality Trust's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Frasers Hospitality Trust (SGX:ACV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Frasers Hospitality Trust (SGX:ACV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

438 Alexandra Road, No.21-00, Alexandra Point, Singapore, SGP, 119958

Website

https://www.frasershospitalitytrust.com

Frasers Hospitality Trust, or FHT, is a global hotel and serviced residence trust that invests in income-producing real estate and real estate-related assets used mainly for hospitality purposes. Its hotels are luxury, upscale, and midscale properties. FHT's investment properties are across Singapore, Australia, Malaysia, Germany, Japan, and the United Kingdom, in cities such as Singapore, Kuala Lumpur, Kobe, Sydney, London, Edinburgh, and Glasgow. Frasers derives the majority of its revenue from its assets in Singapore and Australia. International hotel chains, such as Accor, and InterContinental manage the company's portfolio; as well as Frasers Hospitality, which is a serviced residence operator. The company business segment consist of master leases and hotel under management contract.