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.

KKR Real Estate Finance Trust KREF Interest coverage

Interest coverage at other companies

Blackstone Mortgage TrustBXMT

1.1×—

Starwood Property TrustSTWD

1.3×0.0×

Apollo Commercial Real Estate FinanceARI

1.3×—

TPG RE Finance Trust, Inc.TRTX

1.3×0.0×

Seven Hills Realty TrustSEVN

1.5×0.0×

ACR

ACRES Commercial RealtyACR

1.4×+0.2×

Other financials

Income statement

See full

Revenue$4.2M+151%

Net income-$56.1M-1,055%

EPS (diluted)-$0.96-540%

Balance sheet

See full

Cash & equivalents$137.3M+28.0%

Total debt$4.1B+26.7%

Total equity$1.1B-16.4%

Total assets$7.0B+6.0%

Cash flow

See full

Operating cash flow$13.1M-17.4%

Valuation

See full

Market cap$437.24M-47.0%

Enterprise value$4.35B+12.4%

P/S31.9×—

Profitability

See full

Net margin-717.1%—

Returns & leverage

See full

Return on equity-8.2%-10.7pp

Debt / equity3.7×+1.3×

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.