Chartwell Retirement Residences (TSX:CSH.UN) Interest Coverage : 1.00 (As of Dec. 2023)

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What is Chartwell Retirement Residences 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. Chartwell Retirement Residences's Operating Income for the three months ended in Dec. 2023 was C$20.6 Mil. Chartwell Retirement Residences's Interest Expense for the three months ended in Dec. 2023 was C$-20.7 Mil. Chartwell Retirement Residences's interest coverage for the quarter that ended in Dec. 2023 was 1.00. 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. Chartwell Retirement Residencess earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Chartwell Retirement Residences's Interest Coverage or its related term are showing as below:

TSX:CSH.UN' s Interest Coverage Range Over the Past 10 Years
Min: 0.45 Med: 0.96 Max: 1.2
Current: 0.65

TSX:CSH.UN's Interest Coverage is ranked worse than
94.01% of 668 companies
in the REITs industry
Industry Median: 2.97 vs TSX:CSH.UN: 0.65

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

Chartwell Retirement Residences Interest Coverage Historical Data

The historical data trend for Chartwell Retirement Residences'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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Chartwell Retirement Residences Interest Coverage Chart

Chartwell Retirement Residences Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.16

0.87

0.66

0.45

0.65

Chartwell Retirement Residences 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															0.51	0.21	0.51	0.88	1.00

Competitive Comparison of Chartwell Retirement Residences's Interest Coverage

For the REIT - Residential subindustry, Chartwell Retirement Residences'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.

Chartwell Retirement Residences's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Chartwell Retirement Residences's Interest Coverage falls into.

Chartwell Retirement Residences 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.

Chartwell Retirement Residences'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, Chartwell Retirement Residences's Interest Expense was C$-86.0 Mil. Its Operating Income was C$55.7 Mil. And its Long-Term Debt & Capital Lease Obligation was C$1,654.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	55.729	/	-86.013
	=	0.65

Chartwell Retirement Residences's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Chartwell Retirement Residences's Interest Expense was C$-20.7 Mil. Its Operating Income was C$20.6 Mil. And its Long-Term Debt & Capital Lease Obligation was C$1,654.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	20.626	/	-20.665
	=	1.00

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

Chartwell Retirement Residences (TSX:CSH.UN) 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 .

Chartwell Retirement Residences Interest Coverage Related Terms

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

Chartwell Retirement Residences (TSX:CSH.UN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Chartwell Retirement Residences (TSX:CSH.UN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CWSRF:USA 6QD:Germany

Address

7070 Derrycrest Drive, Mississauga, ON, CAN, L5W 0G5

Website

https://www.chartwell.com

Chartwell Retirement Residences is an unincorporated open-ended real estate trust that is engaged in the ownership, operations, and management of retirement residences and long-term care homes in Canada. The company has two operating segments; The Retirement Operations segment includes retirement residences that the company owns and operates in Canada. The retirement residences provide services to residents at rates set by Chartwell based on the services provided and market conditions, and The Long-Term Care Operations segment consists of long-term care homes in Ontario, one of which has an adjacent retirement residence and Admission and funding for the long-term care homes is overseen by local government agencies in each province.

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