GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » BXP Inc (NYSE:BXP) » Definitions » Financial Strength

BXP (BXP) Financial Strength : 3 (As of Jun. 2024)


View and export this data going back to 1997. Start your Free Trial

What is BXP Financial Strength?

BXP has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

BXP Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

BXP's Interest Coverage for the quarter that ended in Jun. 2024 was 1.68. BXP's debt to revenue ratio for the quarter that ended in Jun. 2024 was 4.74. As of today, BXP's Altman Z-Score is 0.70.


Competitive Comparison of BXP's Financial Strength

For the REIT - Office subindustry, BXP's Financial Strength, along with its competitors' market caps and Financial Strength 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.


BXP's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, BXP's Financial Strength distribution charts can be found below:

* The bar in red indicates where BXP's Financial Strength falls into.



BXP Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

BXP's Interest Expense for the months ended in Jun. 2024 was $-150 Mil. Its Operating Income for the months ended in Jun. 2024 was $251 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $15,629 Mil.

BXP's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*251.418/-149.642
=1.68

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. BXP Inc interest coverage is 1.63, which is low.

2. Debt to revenue ratio. The lower, the better.

BXP's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(500 + 15628.917) / 3401.928
=4.74

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

BXP has a Z-score of 0.70, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.7 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


BXP  (NYSE:BXP) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

BXP has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


BXP Financial Strength Related Terms

Thank you for viewing the detailed overview of BXP's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


BXP Business Description

Industry
Traded in Other Exchanges
Address
800 Boylston Street, Suite 1900, Prudential Center, Boston, MA, USA, 02199-8103
BXP Inc. owns over 180 properties consisting of approximately 53 million rentable square feet of space. The portfolio is dominated by office buildings and is spread across major cities such as New York, Boston, San Francisco, Los Angeles, Seattle, and the Washington, D.C., region. The real estate investment trust also owns limited retail, hotel, and residential properties.
Executives
Raymond A Ritchey officer: Executive Vice President BOSTON PROPERTIES, INC., 901 NEW YORK AVENUE, NW, WASHINGTON DC 20001
Peter V Otteni officer: Senior Vice President 2200 PENNSYLVANIA AVENUE NW, SUITE 200W, WASHINGTON DC 20037
Eric G Kevorkian officer: SVP, CLO and Secretary 800 BOYLSTON STREET, SUITE 1900, BOSTON MA 02199
Rodney Diehl officer: Senior Vice President FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94549
Carol B. Einiger director POST ROCK ADVISORS, LLC, ONE ROCKEFELLER PLAZA, 28TH FLOOR, NEW YORK NY 10020
Tony West director 1455 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94103
Matthew J Lustig director LAZARD FRERES & CO LLC, 30 ROCKEFELLER PLZA 50TH FL, NEW YORK NY 10020
Donna D Garesche officer: EVP, Chief HR Officer C/O BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
Hilary J. Spann officer: Executive Vice President 599 LEXINGTON AVENUE, 16TH FLOOR, NEW YORK NY 10022
Mary E Kipp director 100 N STANTON, EL PASO TX 79901
Douglas T Linde officer: SVP & CFO BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
Frank D Burt officer: Senior Vice President BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
John J Stroman officer: Senior Vice President 2200 PENNSYLVANIA AVENUE NW, SUITE 200W, WASHINGTON DC 20037
Bryan J Koop officer: Senior Vice President BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
Bruce W Duncan director ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606