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DRI Healthcare Trust (TSX:DHT.U) Financial Strength : 3 (As of Dec. 2024)


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What is DRI Healthcare Trust Financial Strength?

DRI Healthcare Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

DRI Healthcare Trust displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate DRI Healthcare Trust's interest coverage with the available data. DRI Healthcare Trust's debt to revenue ratio for the quarter that ended in Dec. 2024 was 1.69. Altman Z-Score does not apply to banks and insurance companies.


DRI Healthcare Trust 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:

DRI Healthcare Trust's Interest Expense for the months ended in Dec. 2024 was $-9.5 Mil. Its Operating Income for the months ended in Dec. 2024 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $320.8 Mil.

DRI Healthcare Trust's Interest Coverage for the quarter that ended in Dec. 2024 is

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

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

DRI Healthcare Trust's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 320.753) / 189.716
=1.69

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


DRI Healthcare Trust  (TSX:DHT.U) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

DRI Healthcare Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


DRI Healthcare Trust Financial Strength Related Terms

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DRI Healthcare Trust Business Description

Traded in Other Exchanges
Address
100 King Street West, 1 First Canadian Place, Suite 7250, Toronto, ON, CAN, M5X 1B1
DRI Healthcare Trust is engaged in pharmaceutical royalty monetization by providing capital to inventors, academic institutions, and biopharma companies. Trust was formed to provide Unitholders with differential exposure to the pharmaceutical and biotechnology industries through ownership and acquisitions of pharmaceutical royalties. In return for providing capital to biopharmaceutical innovators, the company is building a diversified portfolio of interests in medicines that have a demonstrable positive impact on the world. The Trust has concluded that it operates as one segment, focused on acquiring royalty assets. Geographically the trust generates it's key revenue from the United States. The trust also generates Income from markets such as Japan, and the European Union.