Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) Interest Coverage : 7.54 (As of Jun. 2016)

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What is Starwood Hotels & Resorts Worldwide 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. Starwood Hotels & Resorts Worldwide's Operating Income for the three months ended in Jun. 2016 was $181 Mil. Starwood Hotels & Resorts Worldwide's Interest Expense for the three months ended in Jun. 2016 was $-24 Mil. Starwood Hotels & Resorts Worldwide's interest coverage for the quarter that ended in Jun. 2016 was 7.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Starwood Hotels & Resorts Worldwide's Interest Coverage or its related term are showing as below:

HOT's Interest Coverage is not ranked ^*
in the Travel & Leisure industry.
Industry Median: 5.15
* Ranked among companies with meaningful Interest Coverage only.

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

Starwood Hotels & Resorts Worldwide Interest Coverage Historical Data

The historical data trend for Starwood Hotels & Resorts Worldwide'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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Starwood Hotels & Resorts Worldwide Interest Coverage Chart

Starwood Hotels & Resorts Worldwide Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

Get a 7-Day Free Trial

3.10

5.30

8.98

9.10

6.38

Starwood Hotels & Resorts Worldwide Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Interest Coverage	Get a 7-Day Free Trial															6.35	6.67	7.35	6.33	7.54

Competitive Comparison of Starwood Hotels & Resorts Worldwide's Interest Coverage

For the Lodging subindustry, Starwood Hotels & Resorts Worldwide'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.

Starwood Hotels & Resorts Worldwide's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Starwood Hotels & Resorts Worldwide's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Starwood Hotels & Resorts Worldwide's Interest Coverage falls into.

Starwood Hotels & Resorts Worldwide 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.

Starwood Hotels & Resorts Worldwide's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Starwood Hotels & Resorts Worldwide's Interest Expense was $-116 Mil. Its Operating Income was $740 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,278 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	740	/	-116
	=	6.38

Starwood Hotels & Resorts Worldwide's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, Starwood Hotels & Resorts Worldwide's Interest Expense was $-24 Mil. Its Operating Income was $181 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,380 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2016 )	/	Interest Expense (Q: Jun. 2016 )
	=	-1	*	181	/	-24
	=	7.54

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

Starwood Hotels & Resorts Worldwide (NYSE:HOT) 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 .

Starwood Hotels & Resorts Worldwide Interest Coverage Related Terms

Thank you for viewing the detailed overview of Starwood Hotels & Resorts Worldwide's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.starwoodhotels.com

Starwood Hotels & Resorts Worldwide Inc was incorporated in 1980 under the laws of Maryland. It operates as a hotel and leisure company. The Company conducts its hotel and leisure business both directly and through its subsidiaries. It has 1,222 properties providing approximately 354,200 rooms in approximately 100 countries and 180,400 employees under its management at its owned and managed properties, vacation ownership resorts and corporate offices. The Company manage and operate its hotel business in three separate hotel segments: the Americas, Europe, Africa and the Middle East ("EAME"), and Asia Pacific. Its vacation ownership and residential business is a separate segment. It franchises its Luxury Collection, Westin, Le MÃ©ridien, Sheraton, Four Points by Sheraton, Aloft and Element brands and generally derive licensing and other fees from franchisees based on a fixed percentage of the franchised hotel's room revenue, as well as fees for other services, including centralized reservations, loyalty program, national and international advertising and sales and marketing. The Company's brands name includes St. Regis, The Luxury Collection, W, Westin, Le MÃ©ridien, Sheraton, Four Points, Aloft, and Element. Some of its competitors are private management firms, several are national and international chains that own and operate their own hotels, as well as manage hotels for third-party owners and sell VOIs, under a variety of brands that compete directly with its brands. It is subject to taxation at the federal, state or provincial and local levels in the U.S. and various other countries and jurisdictions.

Executives

Charlene Barshefsky	director
Lizanne Galbreath	director	LASALLE PARTNERS INC, 200 RANDOLPH DR, CHICAGO IL 60601
Kenneth S Siegel	officer: CAO & General Counsel	40 STARWOOD HOTELS & RESORTS, 111 WESTCHESTER AVE, WHITE PLAINS NY 10604
Thomas B Mangas	director, officer: Chief Executive Officer	C/O ARMSTRONG WORLD INDUSTRIES, INC., 2500 COLUMBIA AVENUE, LANCASTER PA 17603
Sergio Rivera	officer: President, The Americas	C/O STARWOOD HOTELS & RESORTS WORLDWIDE,, ONE STARPOINT, STAMFORD CT 06902
Stephen R Quazzo	director	C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Daley Clayton C Jr	director	C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Thomas E Clarke	director	C/O NEWELL RUBBERMAID INC, THREE GLENLAKE PKWY., ATLANTA 2Q 30328
Thomas O Ryder	director	C/O READERS DIGEST ASSOCITATION INC, READERS DIGEST RD., PLEASANTVILLE NY 10570
Aylwin B Lewis	director	111 N. CANAL, SUITE 850, CHICAGO IL 60606
Eric Hippeau	director	STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Bruce W Duncan	director	ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606
Adam M Aron	director, officer: CEO on an interim basis	AMC ENTERTAINMENT HOLDINGS, INC, 11500 ASH STREET, LEAWOOD KS 66211
Van Paasschen Frits D	director, officer: President and CEO	C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Vasant M Prabhu	officer: Vice Chairman & CFO	C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588