Digital Realty Trust (Digital Realty Trust) Interest Coverage

: 1.58 (As of Dec. 2023)

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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. Digital Realty Trust's Operating Income for the three months ended in Dec. 2023 was $180 Mil. Digital Realty Trust's Interest Expense for the three months ended in Dec. 2023 was $-114 Mil. Digital Realty Trust's interest coverage for the quarter that ended in Dec. 2023 was 1.58. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Digital Realty Trust's Interest Coverage or its related term are showing as below:

DLR' s Interest Coverage Range Over the Past 10 Years
Min: 1.66 Med: 2 Max: 2.59
Current: 1.66

DLR's Interest Coverage is ranked worse than
75.33% of 677 companies
in the REITs industry
Industry Median: 3.01 vs DLR: 1.66

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

Digital Realty Trust Interest Coverage Historical Data

The historical data trend for Digital Realty Trust'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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Digital Realty Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.78

2.01

2.59

2.21

1.66

Digital Realty Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.63	1.85	1.55	1.68	1.58

Competitive Comparison

For the REIT - Specialty subindustry, Digital Realty Trust'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.

Digital Realty Trust Interest Coverage Distribution

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

* The bar in red indicates where Digital Realty Trust's Interest Coverage falls into.

Digital Realty Trust 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.

Digital Realty Trust'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, Digital Realty Trust's Interest Expense was $-438 Mil. Its Operating Income was $728 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,156 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	727.546	/	-437.741
	=	1.66

Digital Realty Trust's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Digital Realty Trust's Interest Expense was $-114 Mil. Its Operating Income was $180 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,156 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	179.63	/	-113.638
	=	1.58

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

Digital Realty Trust (NYSE:DLR) 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 .

Digital Realty Trust Interest Coverage Related Terms

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

Digital Realty Trust (Digital Realty Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Digital Realty Trust Inc (NYSE:DLR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DLRpL.PFD:USA DLRpK.PFD:USA DLRpJ.PFD:USA DLR:Mexico FQI:Germany FQI:Germany D1LR34:Brazil

Address

5707 Southwest Parkway, Building 1, Suite 275, Austin, TX, USA, 78735

Website

https://www.digitalrealty.com

Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. Digital Realty has also moved more into the co-location business, increasingly serving enterprises and facilitating network and cloud connections. Digital Realty operates as a real estate investment trust.

Executives

Cindy Fiedelman	officer: Chief Human Resources Officer	FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO X1 94111
Peter C. Olson	officer: Chief Accounting Officer	5707 SOUTHWEST PARKWAY, BUILDING 1, SUITE 275, AUSTIN TX 78735
Mandeville Jean F H P	director	C/O INTERXION, SCORPIUS 30, HOOFDDORP P7 2132 LR
Dyer Corey	officer: EVP, Global Sales & Marketing	FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Christopher Sharp	officer: Chief Technology Officer	FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Jeannie Lee	officer: EVP, General Counsel	5707 SOUTHWEST PARKWAY, BUILDING 1, SUITE 275, AUSTIN TX 78735
A William Stein	officer: CFO And CIO	DIGITAL REALTY TRUST, INC., FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
David C Ruberg	officer: MANAGING DIRECTOR, EUROPE	16057 TAMPA PALMS BLVD WEST, #405, TAMPA FL 33647
Kevin Kennedy	director
William G Laperch	director	360 HAMILTON AVE, C/O ABOVENET INC, WHITE PLAINS NY 10601
Joshua Ananda Mills	officer: General Counsel	C/O KKR & CO. INC., 30 HUDSON YARDS, NEW YORK NY 10001
Camilla A. Harris	officer: Principal Accounting Officer	8020 PARK LANE, DALLAS TX 75231
Andrew Power	officer: Chief Financial Officer	FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Michael A Coke	director	TERRENO REALTY CORPORATION, 101 MONTGOMERY STREET, SUITE 200, SAN FRANCISCO CA 94104
Matt Mercier	officer: SVP, Finance and Accounting	FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94111