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.

TPG RE Finance Trust, Inc. TRTX 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×—

Granite Point Mortgage TrustGPMT

0.6×+0.6×

KKR Real Estate Finance TrustKREF

0.7×-0.4×

Seven Hills Realty TrustSEVN

1.5×0.0×

Other financials

Income statement

See full

Revenue$74.2M+9.0%

Net income$18.9M+38.1%

EPS (diluted)$0.19+58.3%

Balance sheet

See full

Cash & equivalents$15.0M-95.9%

Total debt$3.8B—

Total equity$1.1B-3.8%

Total assets$4.5B+12.9%

Cash flow

See full

Operating cash flow$24.6M+28.4%

CapEx$8.0K-96.7%

Free cash flow$24.6M+30.0%

Valuation

See full

Market cap$664.85M-7.3%

Enterprise value$4.47B—

P/E10.1×+0.1×

P/S2.2×-0.2×

Profitability

See full

Net margin22.1%-2.2pp

Returns & leverage

See full

Return on equity6.1%-0.4pp

Debt / equity3.6×—

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.