Simon Property Group (Simon Property Group) Interest Coverage : 3.52 (As of Dec. 2023)

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What is Simon Property Group 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. Simon Property Group's Operating Income for the three months ended in Dec. 2023 was $792 Mil. Simon Property Group's Interest Expense for the three months ended in Dec. 2023 was $-225 Mil. Simon Property Group's interest coverage for the quarter that ended in Dec. 2023 was 3.52. 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. Simon Property Group Inc interest coverage is 3.28, which is low.

The historical rank and industry rank for Simon Property Group's Interest Coverage or its related term are showing as below:

SPG' s Interest Coverage Range Over the Past 10 Years
Min: 2.4 Med: 3.23 Max: 3.69
Current: 3.28

SPG's Interest Coverage is ranked better than
55.03% of 676 companies
in the REITs industry
Industry Median: 2.98 vs SPG: 3.28

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

Simon Property Group Interest Coverage Historical Data

The historical data trend for Simon Property Group'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.

* Premium members only.

Simon Property Group Interest Coverage Chart

Simon Property Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.69

2.51

3.03

3.39

3.28

Simon Property Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.41	3.32	3.02	3.27	3.52

Competitive Comparison of Simon Property Group's Interest Coverage

For the REIT - Retail subindustry, Simon Property Group'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.

Simon Property Group's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Simon Property Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Simon Property Group's Interest Coverage falls into.

Simon Property Group 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.

Simon Property Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Simon Property Group's Interest Expense was $-855 Mil. Its Operating Income was $2,807 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,518 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2807.022	/	-854.648
	=	3.28

Simon Property Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Simon Property Group's Interest Expense was $-225 Mil. Its Operating Income was $792 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,518 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	792.139	/	-224.923
	=	3.52

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

Simon Property Group (NYSE:SPG) 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 .

Simon Property Group Interest Coverage Related Terms

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

Simon Property Group (Simon Property Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Simon Property Group Inc (NYSE:SPG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SPGpJ.PFD:USA SPG:Mexico 1SPG:Italy SQI:Germany SQI:Germany SIMN34:Brazil SPGR:Austria

Address

225 West Washington Street, Indianapolis, IN, USA, 46204

Website

https://www.simon.com

Simon Property Group is the second-largest real estate investment trust in the United States. Its portfolio includes an interest in 231 properties: 136 traditional malls, 70 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), 6 lifestyle centers, and 5 other retail properties. Simon's portfolio averaged $693 in sales per square foot over the 12 months prior to the pandemic. The company also owns a 21% interest in Klepierre, a European retail company with investments in shopping centers in 16 countries, and joint venture interests in 33 premium outlets across 11 countries.

Executives

Larry C Glasscock	director	SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Randall J Lewis	director	WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Allan B Hubbard	director	ANTHEM INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Glyn Aeppel	director	6 WHIPPOORWILL LANE, WESTPORT CT 06880
Gary M Rodkin	director	700 ANDERSON HILL RD, PURCHASE NJ 10577
Reuben S Leibowitz	director	466 LEXINGTON AVENUE 10TH FL, NEW YORK NY 10017
Marta R Stewart	director	C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Daniel C. Smith	director	3000 GODFREY GRADUATE AND EXECUTIVE CTR., 1275 EAST TENTH STREET, BLOOMINGTON IN 47405-1703
Stefan M Selig	director	2 EAST 70TH STREET, NEW YORK NY 10021
Peggy Fang Roe	director	100 COMMERCE LANE, APT. 1401, BETHESDA MD 20814
Karen N Horn	director
Smith J Albert Jr	director	111 MONUMENT CIRCLE, IN1-0175, INDIANAPOLIS IN 46204
Matthew A Jackson	officer: SVP, Assistant Treasurer	225 W. WASHINGTON ST., INDIANAPOLIS IN 46256
Kevin M Kelly	officer: Asst. General Counsel/Sec.	225 W. WASHINGTON ST., INDIANAPOLIS IN 46204
Donald G Frey	officer: EVP, Treasurer	225 W. WASHINGTON ST., INDIANAPOLIS IN 46204