CareTrust REIT (CareTrust REIT) Interest Coverage : 3.81 (As of Dec. 2023)

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What is CareTrust REIT Interest Coverage?

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 by its Interest Expense. CareTrust REIT's Operating Income for the three months ended in Dec. 2023 was $31.5 Mil. CareTrust REIT's Interest Expense for the three months ended in Dec. 2023 was $-8.3 Mil. CareTrust REIT's interest coverage for the quarter that ended in Dec. 2023 was 3.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for CareTrust REIT's Interest Coverage or its related term are showing as below:

CTRE' s Interest Coverage Range Over the Past 10 Years
Min: 0.81 Med: 2.9 Max: 4.41
Current: 2.84

CTRE's Interest Coverage is ranked worse than
52.31% of 671 companies
in the REITs industry
Industry Median: 2.98 vs CTRE: 2.84

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

CareTrust REIT Interest Coverage Historical Data

The historical data trend for CareTrust REIT's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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CareTrust REIT Interest Coverage Chart

CareTrust REIT Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.02

4.31

4.41

3.46

2.84

CareTrust REIT Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.05	2.75	2.56	2.49	3.81

Competitive Comparison of CareTrust REIT's Interest Coverage

For the REIT - Healthcare Facilities subindustry, CareTrust REIT's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

CareTrust REIT's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, CareTrust REIT's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CareTrust REIT's Interest Coverage falls into.

CareTrust REIT Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

CareTrust REIT's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, CareTrust REIT's Interest Expense was $-40.9 Mil. Its Operating Income was $116.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $595.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	116.002	/	-40.883
	=	2.84

CareTrust REIT's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, CareTrust REIT's Interest Expense was $-8.3 Mil. Its Operating Income was $31.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $595.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	31.459	/	-8.266
	=	3.81

The higher the ratio, the stronger the company's Financial Strength is.

CareTrust REIT (NYSE:CTRE) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

CareTrust REIT Interest Coverage Related Terms

Thank you for viewing the detailed overview of CareTrust REIT's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

CareTrust REIT (CareTrust REIT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » CareTrust REIT Inc (NYSE:CTRE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

7XC:Germany

Address

905 Calle Amanecer, Suite 300, San Clemente, CA, USA, 92673

Website

https://www.caretrustreit.com

CareTrust REIT Inc is a self-administered, publicly-traded REIT engaged in the ownership, acquisition, financing, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. The Company has one reportable segment consisting of investments in healthcare-related real estate assets. It generates revenues by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements. The Company generate revenues by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements, under which the tenant is solely responsible for the costs related to the property (including property taxes, insurance, maintenance and repair costs and capital expenditures).

Executives

James Callister	officer: Executive Vice President	905 CALLE AMANECER, SUITE 300, SAN CLEMENTE CA 92673
Anne Olson	director	800 LASALLE AVENUE, SUITE 1600, MINNEAPOLIS MN 55402
Careina D. Williams	director	905 CALLE AMANECER, SUITE 300, SAN CLEMENTE CA 92673
Spencer G Plumb	director	17140 BERNARDO CENTER DRIVE, SUITE 300, SAN DIEGO CA 92128
Diana Laing	director	THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Mark D Lamb	officer: Chief Investment Officer	905 CALLE AMANECER, SUITE 300, SAN CLEMENTE CA 92673
Gary B Sabin	director	16955 VIA DEL CAMPO SUITE 110, SAN DIEGO CA 92127
Jon D Kline	director	903 CALLE AMANECER, SUITE 100, SAN CLEMENTE CA 92673
William M Wagner	officer: See Remarks	903 CALLE AMANECER, SUITE 100, SAN CLEMENTE CA 92673
David M. Sedgwick	officer: Vice President of Operations	27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Gregory K. Stapley	director, officer: President and CEO	27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Allen Barbieri	director
David G. Lindahl	director	27101 PUERTA REAL, SUITE 400, MISSION VIEJO CA 92691
Christopher R. Christensen	director	27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Ensign Group, Inc	10 percent owner	29222 RANCHO VIEJO RD., SUITE 127, SAN JUAN CAPISTRANO CA 92675