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EQR (Equity Residential) Interest Coverage : 3.43 (As of Jun. 2024)


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What is Equity Residential 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. Equity Residential's Operating Income for the three months ended in Jun. 2024 was $226 Mil. Equity Residential's Interest Expense for the three months ended in Jun. 2024 was $-66 Mil. Equity Residential's interest coverage for the quarter that ended in Jun. 2024 was 3.43. The higher the ratio, the stronger the company's financial strength is.

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

EQR' s Interest Coverage Range Over the Past 10 Years
Min: 1.78   Med: 2.24   Max: 3.32
Current: 3.32


EQR's Interest Coverage is ranked better than
56.88% of 705 companies
in the REITs industry
Industry Median: 2.85 vs EQR: 3.32

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


Equity Residential Interest Coverage Historical Data

The historical data trend for Equity Residential'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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Equity Residential Interest Coverage Chart

Equity Residential 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 2.33 2.15 2.28 2.87 3.26

Equity Residential Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.27 3.45 3.13 3.43 3.07

Competitive Comparison of Equity Residential's Interest Coverage

For the REIT - Residential subindustry, Equity Residential'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.


Equity Residential's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Equity Residential's Interest Coverage falls into.



Equity Residential 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.

Equity Residential'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, Equity Residential's Interest Expense was $-270 Mil. Its Operating Income was $878 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,293 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*878.046/-269.556
=3.26

Equity Residential's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Equity Residential's Interest Expense was $-66 Mil. Its Operating Income was $226 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,295 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*225.554/-65.828
=3.43

* 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.


Equity Residential  (NYSE:EQR) 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 .


Equity Residential Interest Coverage Related Terms

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


Equity Residential Business Description

Traded in Other Exchanges
Address
Two North Riverside Plaza, Chicago, IL, USA, 60606
Equity Residential owns a portfolio of 299 apartment communities with around 80,000 units and is developing three additional properties with 977 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
Executives
Catherine Carraway officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 500, CHICAGO IL 60606
Alexander Brackenridge officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Scott Fenster officer: EVP & General Counsel TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Ian Kaufman officer: Chief Accounting Officer C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Michael L Manelis officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Robert Garechana officer: EVP & Chief Financial Officer TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Linda Bynoe director 980 N. MICHIGAN AVE, SUITE 1400, CHICAGO IL 60611
Mary Kay Haben director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
David J Neithercut director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Mark S Shapiro director C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147
Christa L Sorenson officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Angela M Aman director RETAIL PROPERTIES OF AMERICA, INC., 2021 SPRING ROAD, SUITE 200, OAK BROOK IL 60523
Duckworth Connie K director EIGHT WINGS ENTERPRISES, 77 STONE AGTE LANE, LAKE FOREST IL 60045
Bradley A Keywell director
John E Neal director 2020 CALAMOS COURT, NAPERVILLE X1 60563