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American Homes 4 Rent (American Homes 4 Rent) Financial Strength

: 4 (As of Dec. 2023)
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American Homes 4 Rent 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.

American Homes 4 Rent's Interest Coverage for the quarter that ended in Dec. 2023 was 2.86. American Homes 4 Rent's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.74. As of today, American Homes 4 Rent's Altman Z-Score is 1.72.


Competitive Comparison

For the REIT - Residential subindustry, American Homes 4 Rent'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.


American Homes 4 Rent Financial Strength Distribution

For the REITs industry and Real Estate sector, American Homes 4 Rent's Financial Strength distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Financial Strength falls into.



American Homes 4 Rent 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:

American Homes 4 Rent's Interest Expense for the months ended in Dec. 2023 was $-35.09 Mil. Its Operating Income for the months ended in Dec. 2023 was $100.49 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,389.94 Mil.

American Homes 4 Rent'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*100.49/-35.091
=2.86

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

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

American Homes 4 Rent'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
=(90 + 4389.935) / 1634.628
=2.74

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.

American Homes 4 Rent has a Z-score of 1.72, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.72 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.


American Homes 4 Rent  (NYSE:AMHPRA.PFD) 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.

American Homes 4 Rent has the Financial Strength Rank of 4.


American Homes 4 Rent Financial Strength Related Terms

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American Homes 4 Rent (American Homes 4 Rent) Business Description

Traded in Other Exchanges
Address
280 Pilot Road, Las Vegas, NV, USA, 89119
American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.

American Homes 4 Rent (American Homes 4 Rent) Headlines