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Mid-America Apartment Communities (NYSE:MAA) Financial Strength

: 4 (As of Sep. 2022)
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Mid-America Apartment Communities has the Financial Strength Rank of 4.

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.

Mid-America Apartment Communities's Interest Coverage for the quarter that ended in Sep. 2022 was 4.25. Mid-America Apartment Communities's debt to revenue ratio for the quarter that ended in Sep. 2022 was 2.17. As of today, Mid-America Apartment Communities's Altman Z-Score is 2.40.


Mid-America Apartment Communities (NYSE:MAA) Financial Strength Competitive Comparison

For the REIT - Residential subindustry, Mid-America Apartment Communities'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.

   

Mid-America Apartment Communities (NYSE:MAA) Financial Strength Distribution

For the REITs industry and Real Estate sector, Mid-America Apartment Communities's Financial Strength distribution charts can be found below:

* The bar in red indicates where Mid-America Apartment Communities's Financial Strength falls into.



Mid-America Apartment Communities 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:

Mid-America Apartment Communities's Interest Expense for the months ended in Sep. 2022 was $-39 Mil. Its Operating Income for the months ended in Sep. 2022 was $164 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $4,394 Mil.

Mid-America Apartment Communities's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*164.031/-38.637
=4.25

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

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

Mid-America Apartment Communities's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(125 + 4394.151) / 2083.132
=2.17

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.

Mid-America Apartment Communities has a Z-score of 2.40, indicating it is in Grey Zones. This implies that Mid-America Apartment Communities is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.4 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Mid-America Apartment Communities  (NYSE:MAA) 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.

Mid-America Apartment Communities has the Financial Strength Rank of 4.


Mid-America Apartment Communities Financial Strength Related Terms

Thank you for viewing the detailed overview of Mid-America Apartment Communities's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Mid-America Apartment Communities (NYSE:MAA) Business Description

Mid-America Apartment Communities logo
Address
6815 Poplar Avenue, Suite 500, Germantown, TN, USA, 38138
Mid-America Apartment Communities Inc, or MAA, is a real estate investment trust engaged in the acquisition, operation, and development of multifamily apartment communities primarily located in the southeastern and southwestern United States. The company's real estate portfolio contains holdings in most of the states in these two regions. Specifically, the states of Texas, Florida, and North Carolina contain a majority of Mid-America Apartment's total number of apartment units. The company derives nearly all of its income in the form of rental revenue from leases. Most of this income comes from its holdings in Texas, Florida, and North Carolina as well. MAA also has partial ownership and operation of a number of commercial properties as well.
Executives
Hill Adrian officer: EVP, Chief Investment Officer 6815 POPLAR AVE SUITE 500 GERMANTOWN TN 38138
Delpriore Robert J. officer: EVP, General Counsel 6584 POPLAR AVENUE MEMPHIS TN 38138
Carpenter Melanie officer: EVP & CHRO 6815 POPLAR AVE SUITE 500 GERMANTOWN TN 38138
Kelly Green Edith director 3131 DEMOCRAT ROAD BLDG B206 MEMPHIS TN 38118
Stockert David P director 4401 NORTHSIDE PARKWAY SUITE 800 ATLANTA GA 30327-3057
French Russell R director 9 NORTH PARKWAY SQUARE 4200 NORTHSIDE PARKWAY ATLANTA GA 30327
Jennings Toni director C/O NEXTERA ENERGY, INC. 700 UNIVERSE BLVD JUNO BEACH FL 33408
Mcgurk Monica Houle director 6584 POPLAR AVENUE MEMPHIS TN 38138
Wright Edward Thomas officer: EVP, Dev and Cap Projects 6584 POPLAR AVENUE MEMPHIS TN 38138
Nielsen Claude B director 2101 6TH AVE N STE 750 BIRMINGHAM AL 35203
Spiegel John W director C/O UPS STORE 830-13 A1A NORTH #452 PONTE VEDRA BEACH FL 32082
Ripps Harold W director C/O COLONIAL PROPERTIES TRUST 2101 6TH AVE N. #750 BIRMINGHAM AL 35203
Lowder Thomas H director C/O COLONIAL PROPERTIES TRUST 2101 6TH AVE N. #750 BIRMINGHAM AL 35203
Lowder James K director C/O COLONIAL PROPERTIES TRUST 2101 6TH AVE N. #750 BIRMINGHAM AL 36203
Shorb Gary director 6584 POPLAR AVE MEMPHIS TN 38138

Mid-America Apartment Communities (NYSE:MAA) Headlines

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