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JBG SMITH Properties (FRA:JBG) Financial Strength : 4 (As of Mar. 2024)


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What is JBG SMITH Properties Financial Strength?

JBG SMITH Properties has the Financial Strength Rank of 4.

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.

JBG SMITH Properties's Interest Coverage for the quarter that ended in Mar. 2024 was 0.07. JBG SMITH Properties's debt to revenue ratio for the quarter that ended in Mar. 2024 was 4.49. As of today, JBG SMITH Properties's Altman Z-Score is 0.22.


Competitive Comparison of JBG SMITH Properties's Financial Strength

For the REIT - Office subindustry, JBG SMITH Properties'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.


JBG SMITH Properties's Financial Strength Distribution in the REITs Industry

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

* The bar in red indicates where JBG SMITH Properties's Financial Strength falls into.



JBG SMITH Properties 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:

JBG SMITH Properties's Interest Expense for the months ended in Mar. 2024 was €-24.1 Mil. Its Operating Income for the months ended in Mar. 2024 was €1.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €2,401.1 Mil.

JBG SMITH Properties's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*1.799/-24.118
=0.07

The higher the ratio, the stronger the company's financial strength is.

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

JBG SMITH Properties's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 2401.059) / 534.276
=4.49

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.

JBG SMITH Properties has a Z-score of 0.22, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.22 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.


JBG SMITH Properties  (FRA:JBG) 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.

JBG SMITH Properties has the Financial Strength Rank of 4.


JBG SMITH Properties Financial Strength Related Terms

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JBG SMITH Properties (FRA:JBG) Business Description

Traded in Other Exchanges
Address
4747 Bethesda Avenue, Suite 200, Bethesda, MD, USA, 20814
JBG SMITH Properties is a real estate investment trust based in the United States. It owns, operates, invests in and develops real estate assets concentrated in urban infill submarkets in and around Washington, DC. In addition, the company also provides fee-based real estate services to the legacy funds through its third-party real estate services business. The operating segments of the company are commercial, multifamily and third-party asset management and real estate services.

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