What is CIM Real Estate Finance Trust Financial Strength?
CIM Real Estate Finance Trust 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:
CIM Real Estate Finance Trust 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.
CIM Real Estate Finance Trust's Interest Coverage for the quarter that ended in Mar. 2024 was 0.48.
CIM Real Estate Finance Trust's debt to revenue ratio for the quarter that ended in Mar. 2024 was 7.23.
As of today, CIM Real Estate Finance Trust's Altman Z-Score is 0.51.
Competitive Comparison of CIM Real Estate Finance Trust's Financial Strength
For the REIT - Retail subindustry, CIM Real Estate Finance Trust'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.
CIM Real Estate Finance Trust's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, CIM Real Estate Finance Trust's Financial Strength distribution charts can be found below:
* The bar in red indicates where CIM Real Estate Finance Trust's Financial Strength falls into.
CIM Real Estate Finance Trust 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.
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:
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. CIM Real Estate Finance Trust Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
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.
CIM Real Estate Finance Trust has a Z-score of 0.51, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.51 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.
CIM Real Estate Finance Trust (OTCPK:CMRF) 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.
CIM Real Estate Finance Trust 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.
CIM Real Estate Finance Trust Financial Strength Related Terms
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CIM Real Estate Finance Trust (CIM Real Estate Finance Trust) Business Description
CIM Real Estate Finance Trust Inc is a real estate investment trust. The company invests in commercial real estate investments consisting of necessity retail properties located throughout the United States. The company operates a diversified portfolio of core commercial real estate consisting of net leased properties located throughout the United States and short-duration senior secured loans and other credit investments.
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