SM Prime Holdings (PHS:SMPH) Interest Coverage : 3.31 (As of Dec. 2023)

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What is SM Prime Holdings 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. SM Prime Holdings's Operating Income for the three months ended in Dec. 2023 was ₱16,757 Mil. SM Prime Holdings's Interest Expense for the three months ended in Dec. 2023 was ₱-5,070 Mil. SM Prime Holdings's interest coverage for the quarter that ended in Dec. 2023 was 3.31. 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. SM Prime Holdings Inc interest coverage is 4.39, which is low.

The historical rank and industry rank for SM Prime Holdings's Interest Coverage or its related term are showing as below:

PHS:SMPH' s Interest Coverage Range Over the Past 10 Years
Min: 3.38 Med: 6.42 Max: 9.3
Current: 4.39

PHS:SMPH's Interest Coverage is ranked better than
52.53% of 1342 companies
in the Real Estate industry
Industry Median: 3.955 vs PHS:SMPH: 4.39

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

SM Prime Holdings Interest Coverage Historical Data

The historical data trend for SM Prime Holdings'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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SM Prime Holdings Interest Coverage Chart

SM Prime Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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6.42

3.38

3.46

4.29

4.39

SM Prime Holdings 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															3.33	5.27	5.83	4.25	3.31

Competitive Comparison of SM Prime Holdings's Interest Coverage

For the Real Estate - Diversified subindustry, SM Prime Holdings'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.

SM Prime Holdings's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, SM Prime Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SM Prime Holdings's Interest Coverage falls into.

SM Prime Holdings 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.

SM Prime Holdings'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, SM Prime Holdings's Interest Expense was ₱-13,963 Mil. Its Operating Income was ₱61,279 Mil. And its Long-Term Debt & Capital Lease Obligation was ₱294,622 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	61279.241	/	-13963.271
	=	4.39

SM Prime Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, SM Prime Holdings's Interest Expense was ₱-5,070 Mil. Its Operating Income was ₱16,757 Mil. And its Long-Term Debt & Capital Lease Obligation was ₱294,622 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	16757.026	/	-5069.73
	=	3.31

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

SM Prime Holdings (PHS:SMPH) 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 .

SM Prime Holdings Interest Coverage Related Terms

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

SM Prime Holdings (PHS:SMPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » SM Prime Holdings Inc (PHS:SMPH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SPHXF:USA

Address

Coral Way cor. J.W. Diokno Boulevard, 10th Floor, Mall of Asia Arena Annex Building, Mall of Asia Complex, Brgy. 76, Zone 10, CBP-1A, Pasay, PHL, 1300

Website

https://www.smprime.com

SM Prime Holdings Inc is an integrated property developer in Southeast Asia. Through subsidiaries and business units, it sells affordable condominium units and develops and leases office buildings in Metro Manila. It also houses a unit that develops and manages hotel and convention centers across the Philippines. Residential properties are strategically offered near business and lifestyle districts and provide a host of amenities at prices that cater to the middle market. Malls are the leading revenue provider and are equipped to handle thousands of residents in addition to cinema operations.

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