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Crown Castle Financial Strength

: 3 (As of Jun. 2022)
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Crown Castle 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:

Crown Castle Inc 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 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.

Crown Castle's Interest Coverage for the quarter that ended in Jun. 2022 was 3.82. Crown Castle's debt to revenue ratio for the quarter that ended in Jun. 2022 was 3.99. As of today, Crown Castle's Altman Z-Score is 1.49.


Competitive Comparison

For the REIT - Specialty subindustry, Crown Castle'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.

   

Crown Castle Financial Strength Distribution

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

* The bar in red indicates where Crown Castle's Financial Strength falls into.



Crown Castle 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:

Crown Castle's Interest Expense for the months ended in Jun. 2022 was $-158 Mil. Its Operating Income for the months ended in Jun. 2022 was $603 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $27,229 Mil.

Crown Castle's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*603/-158
=3.82

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Crown Castle Inc interest coverage is 3.64, which is low.

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

Crown Castle's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(418 + 27229) / 6936
=3.99

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.

Crown Castle has a Z-score of 1.49, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.49 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.


Crown Castle  (NYSE:CCI) 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.

Crown Castle 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.


Crown Castle Financial Strength Related Terms

Thank you for viewing the detailed overview of Crown Castle's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Crown Castle Business Description

Crown Castle logo
Address
8020 Katy Freeway, Houston, TX, USA, 77024-1908
Crown Castle International owns and leases roughly 40,000 cell towers in the United States. It also owns more than 80,000 route miles of fiber. It leases space on its towers to wireless service providers, which install equipment on the towers to support their wireless networks. The company's fiber is primarily leased by wireless service providers to set up small-cell network infrastructure and by enterprises for their internal connection needs. Crown Castle's towers and fiber are predominantly located in the largest U.S. cities. The company has a very concentrated customer base, with more than 70% of its revenue coming from the big three U.S. mobile carriers. Crown Castle operates as a real estate investment trust.
Executives
Piche Catherine officer: EVP & COO-Towers 8020 KATY FREEWAY HOUSTON TX 77024
Nichol Laura B officer: EVP - Business Support 8020 KATY FREEWAY HOUSTON TX 77024
Stephens Kevin A director 1220 AUGUSTA DRIVE, SUITE 600 HOUSTON TX 77057
Levendos Christopher officer: EVP & COO - Fiber 8020 KATY FREEWAY HOUSTON TX 77024
Thornton Matthew Iii director 3610 HACKS CROSS ROAD MEMPHIS TN 38125
Jones Tammy director MONOGRAM RESIDENTIAL TRUST,INC. 5800 GRANITE PARKWAY, SUITE 1000 PLANO TX 75024
Goldsmith Andrea Jo director 1220 AUGUSTA DRIVE SUITE 600 HOUSTON TX 77057
Ackerman Robert Carl officer: SVP-COO-Towers and Small Cell 8020 KATY FREEWAY HOUSTON TX 77024
Collins Robert Sean officer: Vice President and Controller 8020 KATY FREEWAY HOUSTON TX 77024
Kavanagh Michael Joseph officer: SVP & Chief Commercial Officer 8020 KATY FREEWAY HOUSTON TX 77024
Schlanger Daniel K officer: SVP & Chief Financial Officer 8020 KATY FREEWAY HOUSTON TX 77024
Simon Kenneth Jay officer: SVP and General Counsel 8020 KATY FREEWAY HOUSTON TX 77024
Melone Anthony J. director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR NEW YORK NY 10036
Kelly John P director
Slowey Patrick officer: SVP & Chief Commercial Officer 1220 AUGUSTA DRIVE SUITE 500 HOUSTON TX 77057

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