What does interest coverage mean?

How many times the company's operating profit covers its interest bill.

How do you interpret interest coverage?

Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.

How does interest coverage compare across companies?

Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.

Blackstone Mortgage Trust BXMT Interest coverage

Interest coverage at other companies

ACR

ACRES Commercial RealtyACR

1.4×+0.2×

Seven Hills Realty TrustSEVN

1.5×0.0×

Starwood Property TrustSTWD

1.3×0.0×

Apollo Commercial Real Estate FinanceARI

1.3×—

Ladder CapitalLADR

1.3×-0.2×

TPG RE Finance Trust, Inc.TRTX

1.3×0.0×

Other financials

Income statement

See full

Revenue$486.1M-1.1%

Net income-$6.3M-1,664%

EPS (diluted)-$0.04—

Balance sheet

See full

Cash & equivalents$549.2M-17.9%

Total debt$16.9B-0.8%

Total equity$3.4B-7.2%

Total assets$19.6B-1.6%

Cash flow

See full

Operating cash flow$169.7M+68.9%

Valuation

See full

Market cap$3.01B-5.8%

Enterprise value$19.35B-1.1%

P/E29×—

P/S1.5×-0.2×

Profitability

See full

Net margin0.4%—

Returns & leverage

See full

Return on equity2.9%—

Debt / equity4.9×+0.3×

Questions, answered.

What does interest coverage mean?: How many times the company's operating profit covers its interest bill.
How do you interpret interest coverage?: Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.
How does interest coverage compare across companies?: Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.