GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » LHC Group Inc (NAS:LHCG) » Definitions » Financial Strength

LHC Group (LHC Group) Financial Strength : 5 (As of Dec. 2022)


View and export this data going back to 2005. Start your Free Trial

What is LHC Group Financial Strength?

LHC Group has the Financial Strength Rank of 5.

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.

LHC Group's Interest Coverage for the quarter that ended in Dec. 2022 was 1.43. LHC Group's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.38. As of today, LHC Group's Altman Z-Score is 4.01.


Competitive Comparison of LHC Group's Financial Strength

For the Medical Care Facilities subindustry, LHC Group'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.


LHC Group's Financial Strength Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, LHC Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where LHC Group's Financial Strength falls into.



LHC Group 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:

LHC Group's Interest Expense for the months ended in Dec. 2022 was $-12 Mil. Its Operating Income for the months ended in Dec. 2022 was $17 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $808 Mil.

LHC Group's Interest Coverage for the quarter that ended in Dec. 2022 is

Interest Coverage=-1*Operating Income (Q: Dec. 2022 )/Interest Expense (Q: Dec. 2022 )
=-1*16.666/-11.68
=1.43

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

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

LHC Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(36.445 + 807.52) / 2232.68
=0.38

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.

LHC Group has a Z-score of 4.01, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.01 is strong.

* 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.


LHC Group  (NAS:LHCG) 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.

LHC Group has the Financial Strength Rank of 5.


LHC Group Financial Strength Related Terms

Thank you for viewing the detailed overview of LHC Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


LHC Group (LHC Group) Business Description

Traded in Other Exchanges
N/A
Address
901 Hugh Wallis Road South, Lafayette, LA, USA, 70508
LHC Group Inc provides post-acute health care services to patients through its home nursing agencies, community-based services agencies, hospice agencies, and long-term acute care hospitals. The company's home health service locations offer a wide range of services, including skilled nursing, medically-oriented social services and physical, occupational, and speech therapy. Its hospices provide end-of-life care to patients with terminal illnesses through interdisciplinary teams of physicians, nurses, home health aides, counselors, and volunteers. Its other service segments are Home and community based, Facility-based, Hospice and Healthcare Innovations. The company derives most of its revenues from the Home health services.
Executives
Nicholas Iii Gachassin officer: EVP, General Counsel 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508
Dale Mackel other: CFO 901 HUGH WALLIS ROAD S, LAFAYETTE LA 70508-2511
Reed W Earl Iii director 9510 OMSBY SLATION ROAD, STE 300, LOIISVILLE KY 40223
Kimberly S Seymour other: SVP, Chief Accounting Officer 901 HUGH WALLIS ROAD S, LAFAYETTE LA 70508
Tricia Nguyen other: EVP, Chief Medical Officer 1801 KIRA COURT, ARLINGTON TX 76006
Mcquiddy Collin other: SVP, Chief Accounting Officer 901 HUGH WALLIS ROAD S, LAFAYETTE LA 70508
Donald Dwayne Stelly officer: Senior Vice President 420 WEST PINHOOK ROAD, SUITE A, LAFAYETTE LA 70503
John L Indest director, officer: COO of Home, Senior V.P. 420 WEST PINHOOK ROAD, SUITE A, LAFAYETTE LA 70503
Ronald T Nixon director 1375 ENCLAVE PKWY, HOUSTON TX 77077
Keith G Myers director, 10 percent owner, officer: CEO and President 901 HUGH WALLIS RD S, LAFAYETTE LA 70508
Joshua L. Proffitt officer: Executive Vice President 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508
Teri G. Fontenot director 18933 EAST PINNACLE CIRCLE, BATON ROUGE LA 70634
Tyree G Wilburn director
Jeff Reibel officer: See Remarks 9510 ORMSBY STATION ROAD, SUITE 300, LOUISVILLE KY 40223
Bruce D Greenstein officer: Chief Innovation Officer 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508

LHC Group (LHC Group) Headlines

From GuruFocus

Top 5 2nd Quarter Trades of Handelsinvest Investeringsforvaltning

By GuruFocus Research GuruFocus Editor 07-13-2022

Tributary Capital Management, LLC Buys 1, Sells 4 in 2nd Quarter

By GuruFocus Research GuruFocus Editor 07-19-2022