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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. LTC Properties's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $891.3 Mil.
Warning Sign:
LTC Properties Inc keeps issuing new debt. Over the past 3 years, it issued USD 242.87 million of debt.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. LTC Properties's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $891.3 Mil. LTC Properties's Total Assets for the quarter that ended in Dec. 2023 was $1,855.1 Mil. LTC Properties's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.48.
LTC Properties's LT-Debt-to-Total-Asset increased from Dec. 2022 (0.46) to Dec. 2023 (0.48). It may suggest that LTC Properties is progressively becoming more dependent on debt to grow their business.
The historical data trend for LTC Properties's Long-Term Debt & Capital Lease Obligation can be seen below:
* 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.
LTC Properties Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 693.39 | 649.38 | 722.72 | 767.85 | 891.32 |
LTC Properties Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 767.85 | 630.95 | 627.04 | 593.97 | 891.32 |
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
LTC Properties (NYSE:LTC) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
LTC Properties's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:
LT-Debt-to-Total-Asset (Q: Dec. 2023 ) | = | Long-Term Debt & Capital Lease Obligation (Q: Dec. 2023 ) | / | Total Assets (Q: Dec. 2023 ) |
= | 891.317 | / | 1855.098 | |
= | 0.48 |
* 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.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
Thank you for viewing the detailed overview of LTC Properties's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Boyd W Hendrickson | director | 22917 PACIFIC COAST HWY, SUITE 350, MALIBU CA 90265 |
Pamela Shelley-kessler | officer: VP & Controller | 300 ESPLANADE DR #1860, OXNARD CA 93036 |
David L Gruber | director | 2829 TOWNSGATE RD, STE 350, WESTLAKE VILLAGE CA 91361 |
Wendy Simpson | director, officer: CFO & Treasurer | 300 ESPLANADE DR #1860, OXNARD CA 93036 |
Caroline Wong | officer: VP, Controller & Treasurer | 2829 TOWNSGATE RD, SUITE 350, WESTLAKE VILLAGE CA 91361 |
Timothy Triche | director | 2358 NORTH VERMONT AVE, LOS ANGELES CA 90027 |
Cheng Cornelia | director | 2829 TOWNSGATE RD, STE 350, STE 350, WESTLAKE VILLAGE CA 91361 |
James Pieczynski | director | PACWEST BANCORP, 9701 WILSHIRE BOULEVARD, SUITE 700, BEVERLY HILLS CA 90212 |
Clint B Malin | officer: VP & CIO | 22917 PACIFIC COAST HWY, SUITE 350, MALIBU CA 90265 |
Brent P. Chappell | officer: SVP, Inv. & Portfolio Mgmt | 2829 TOWNSGATE RD #350, WESTLAKE VILLAGE CA 91361 |
Edmund King | director | 258 VINEYARD LANE, MESQUITE NV 89027 |
Thomas Andrew Stokes | officer: VP, Marketing/Strat. Planning | 31365 OAK CREST DRIVE, SUITE 200, WESTLAKE VILLAGE CA 91361 |
Peter G Lyew | officer: VP, Director of Taxes | 31365 OAK CREST DRVE, SUITE 200, WESTLAKE VILLAGE CA 91361 |
Andre C Dimitriadis | director, officer: CEO and President | 9955 SE WASHINTON, SUITE 201, PORTLAND OR 97216 |
Devra G Shapiro | director | C/O IPC THE HOSPITALIST COMPANY, INC., 4605 LANKERSHIM BLVD SUITE 617, NORTH HOLLYWOOD CA 91602 |
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