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Community Healthcare Trust Financial Strength

: 4 (As of Dec. 2020)
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Community Healthcare Trust 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.

Community Healthcare Trust's Interest Coverage for the quarter that ended in Dec. 2020 was 3.42. Community Healthcare Trust's debt to revenue ratio for the quarter that ended in Dec. 2020 was 10.55. As of today, Community Healthcare Trust's Altman Z-Score is 2.95.


Competitive Comparison
* 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.


Community Healthcare Trust Financial Strength Distribution

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



Community 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:

Community Healthcare Trust's Interest Expense for the months ended in Dec. 2020 was $-2.13 Mil. Its Operating Income for the months ended in Dec. 2020 was $7.29 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2020 was $212.37 Mil.

Community Healthcare Trust's Interest Coverage for the quarter that ended in Dec. 2020 is

Interest Coverage=-1*Operating Income (Q: Dec. 2020 )/Interest Expense (Q: Dec. 2020 )
=-1*7.288/-2.134
=3.42

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

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

Community Healthcare Trust's Debt to Revenue Ratio for the quarter that ended in Dec. 2020 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2020 ) / Revenue (Q: Dec. 2020 )
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 212.374) / 20.124
=10.55

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.

Community Healthcare Trust has a Z-score of 2.95, indicating it is in Grey Zones. This implies that Community Healthcare Trust 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 2.95 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy 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.


Community Healthcare Trust  (NYSE:CHCT) 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.

Community Healthcare Trust has the Financial Strength Rank of 4.


Community Healthcare Trust Financial Strength Related Terms


Community Healthcare Trust Financial Strength Headlines

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