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Healthcare Realty Trust (FRA:HT0) Financial Strength : 3 (As of Dec. 2023)


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What is Healthcare Realty Trust Financial Strength?

Healthcare Realty 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.

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.

Healthcare Realty Trust's Interest Coverage for the quarter that ended in Dec. 2023 was 0.24. Healthcare Realty Trust's debt to revenue ratio for the quarter that ended in Dec. 2023 was 4.01. As of today, Healthcare Realty Trust's Altman Z-Score is 0.35.


Competitive Comparison of Healthcare Realty Trust's Financial Strength

For the REIT - Healthcare Facilities subindustry, Healthcare Realty Trust'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.


Healthcare Realty Trust's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Healthcare Realty Trust's Financial Strength distribution charts can be found below:

* The bar in red indicates where Healthcare Realty Trust's Financial Strength falls into.



Healthcare Realty 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:

Healthcare Realty Trust's Interest Expense for the months ended in Dec. 2023 was €-56 Mil. Its Operating Income for the months ended in Dec. 2023 was €13 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €4,538 Mil.

Healthcare Realty Trust's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*13.224/-55.916
=0.24

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

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

Healthcare Realty Trust's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(320.765 + 4538.488) / 1212.056
=4.01

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.

Healthcare Realty Trust has a Z-score of 0.35, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.35 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Healthcare Realty Trust  (FRA:HT0) 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.

Healthcare Realty 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.


Healthcare Realty Trust Financial Strength Related Terms

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Healthcare Realty Trust (FRA:HT0) Business Description

Traded in Other Exchanges
Address
3310 West End Avenue, Suite 700, Nashville, TN, USA, 37203
Healthcare Realty Trust Inc is a healthcare facility real estate investment trust. The company focuses on owning, leasing, and managing outpatient facilities and other healthcare properties. The company considers merger and acquisition investment as a component of its operational growth strategy. It works with developers that have strong ties to a local health system and physicians. The company works to invest in outpatient facilities that are integral to a hospital's operations. It generates all of its revenue in the United States.

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