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Ventas Financial Strength

: 3 (As of Jun. 2022)
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Ventas 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:

Ventas 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.

Ventas's Interest Coverage for the quarter that ended in Jun. 2022 was 1.15. Ventas's debt to revenue ratio for the quarter that ended in Jun. 2022 was 3.06. As of today, Ventas's Altman Z-Score is 0.79.


Competitive Comparison

For the REIT - Healthcare Facilities subindustry, Ventas'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.

   

Ventas Financial Strength Distribution

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

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



Ventas 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:

Ventas's Interest Expense for the months ended in Jun. 2022 was $-114 Mil. Its Operating Income for the months ended in Jun. 2022 was $131 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $12,141 Mil.

Ventas'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*131.241/-113.951
=1.15

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. Ventas Inc interest coverage is 1.07, which is low.

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

Ventas'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
=(380.894 + 12141.487) / 4091.752
=3.06

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.

Ventas has a Z-score of 0.79, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.79 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.


Ventas  (NYSE:VTR) 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.

Ventas 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.


Ventas Financial Strength Related Terms

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


Ventas Business Description

Ventas logo
Address
353 North Clark Street, Suite 3300, Chicago, IL, USA, 60654
Ventas owns a diversified healthcare portfolio of over 1,200 in-place properties spread across the senior housing, medical office, hospital, life science, and skilled nursing/post-acute care. The portfolio includes over 40 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to the United States. The firm also owns mortgages and other loans, contributing about 3% of NOI.
Executives
Embler Michael J director C/O NMI HOLDINGS, INC. 2100 POWELL STREET EMERYVILLE CA 94608
Smith Maurice S director 353 N. CLARK STREET SUITE 3300 CHICAGO IL 60654
Nader Marguerite M director 2S601 AVENUE LA TOURS OAK BROOK IL 60523
Roberts Carey S. officer: EVP and GC C/O VENTAS, INC. 353 N. CLARK STREET, SUITE 3300 CHICAGO IL 60654
Hutchens James Justin officer: EVP Sr Housing North America C/O VENTAS, INC. 353 N. CLARK STREET, SUITE 3300 CHICAGO IL 60654
Nolan Sean P. director C/O INTERMUNE, INC. 3280 BAYSHORE BLVD. BRISBANE CA 94005
Bulgarelli Peter J. officer: Pres&CEO-LHS/EVP Office-Ventas 353 N. CLARK STREET SUITE 3300 CHICAGO IL 60654
Rakowich Walter C director 14100 E 35TH PL AURORA CO 80011
Martino Roxanne M director 353 NORTH CLARK STREET SUITE 3300 CHICAGO IL 60654
Liebbe Gregory R officer: SVP, Chief Accounting Officer 500 N. HURSTBOURNE PARKWAY SUITE 200 LOUISVILLE KY 40222
Probst Robert F officer: EVP, CFO and Acting CAO 353 N. CLARK STREET SUITE 3300 CHICAGO IL 60654
Barnes Melody C director 1631 MONUMENT AVENUE RICHMOND VA 23220
Gilchrist Richard I director 5950 SHERRY LANE SUITE 700 DALLAS TX 75225
Paulson Robert D director AEROSTAR CAPITAL LLC 590 SANDHILL CRANE RD., #1270 WILSON WY 83014-1270
Pasquale Douglas M director 245 FICHER AVE STE D-1 COSTA MESA CA 92626

Ventas Headlines

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