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Phillips Edison (Phillips Edison) Interest Coverage : 1.88 (As of Mar. 2024)


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What is Phillips Edison 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. Phillips Edison's Operating Income for the three months ended in Mar. 2024 was $43.8 Mil. Phillips Edison's Interest Expense for the three months ended in Mar. 2024 was $-23.3 Mil. Phillips Edison's interest coverage for the quarter that ended in Mar. 2024 was 1.88. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Phillips Edison's Interest Coverage or its related term are showing as below:

PECO' s Interest Coverage Range Over the Past 10 Years
Min: 0.71   Med: 1.06   Max: 1.85
Current: 1.82


PECO's Interest Coverage is ranked worse than
71.58% of 672 companies
in the REITs industry
Industry Median: 2.985 vs PECO: 1.82

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


Phillips Edison Interest Coverage Historical Data

The historical data trend for Phillips Edison'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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Phillips Edison Interest Coverage Chart

Phillips Edison Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.87 0.91 1.37 1.85 1.83

Phillips Edison Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.94 1.82 1.89 1.70 1.88

Competitive Comparison of Phillips Edison's Interest Coverage

For the REIT - Retail subindustry, Phillips Edison'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.


Phillips Edison's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Phillips Edison's Interest Coverage falls into.



Phillips Edison 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.

Phillips Edison'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, Phillips Edison's Interest Expense was $-83.9 Mil. Its Operating Income was $153.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,896.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*153.758/-83.864
=1.83

Phillips Edison's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Phillips Edison's Interest Expense was $-23.3 Mil. Its Operating Income was $43.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,899.3 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*43.758/-23.335
=1.88

* 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.

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


Phillips Edison  (NAS:PECO) 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 .


Phillips Edison Interest Coverage Related Terms

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


Phillips Edison (Phillips Edison) Business Description

Traded in Other Exchanges
N/A
Address
11501 Northlake Drive, Cincinnati, OH, USA, 45249
Phillips Edison & Co Inc is a real estate investment trust. It invests primarily in well-occupied, grocery-anchored neighborhood and community shopping centers. It holds an integrated in-house operating platform built on market leading expertise designed to optimize property value and consistently deliver a great shopping experience.
Executives
Anthony E Terry director 9002 SAN MARCO COURT, ORLANDO FL 32819
Parilee Edison Wang director 3982 SADDLEBACK ROAD, PARK CITY UT 84098
Leslie T Chao director 103 EISENHOWER PARKWAY, ROSELAND NJ 07068
Paul Massey director PHILLIPS EDISON-ARC SHOPPING CENTER REIT, 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
John P Caulfield officer: CFO, SVP & Treasurer 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
Elizabeth Fischer director 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
Jane Silfen director 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
David W Garrison director C/O SONICWALL, INC.,, 1143 BORREGAS AVE, SUNNYVALE CA 94089
John A. Strong director 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
Tanya Brady officer: See Remarks C/O PHILLIPS EDISON & COMPANY, INC., 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
Gregory S. Wood director 800 SOUTH ST. STE # 305, WALTHAM MA 02453
Stephen R Quazzo director C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Devin Ignatius Murphy officer: CFO, Secretary and Treasurer 104 MAIN STREET, SOUTHPORT CT 06890
Jeffrey Edison director, officer: Chairman of the Board & CEO 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249
Robert Mark Addy officer: Executive Vice President 11501 NORTHLAKE DRIVE, CINCINNATI OH 45249