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Universal Health Realtyome Trust (Universal Health Realtyome Trust) Financial Strength

: 3 (As of Dec. 2023)
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Universal Health Realtyome Trust 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:

Universal Health Realty Income Trust 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.

Universal Health Realtyome Trust's Interest Coverage for the quarter that ended in Dec. 2023 was 1.36. Universal Health Realtyome Trust's debt to revenue ratio for the quarter that ended in Dec. 2023 was 3.81. As of today, Universal Health Realtyome Trust's Altman Z-Score is 0.39.


Competitive Comparison

For the REIT - Healthcare Facilities subindustry, Universal Health Realtyome Trust'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.


Universal Health Realtyome Trust Financial Strength Distribution

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

* The bar in red indicates where Universal Health Realtyome Trust's Financial Strength falls into.



Universal Health Realtyome 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:

Universal Health Realtyome Trust's Interest Expense for the months ended in Dec. 2023 was $-6.00 Mil. Its Operating Income for the months ended in Dec. 2023 was $8.16 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $43.81 Mil.

Universal Health Realtyome Trust'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*8.155/-5.999
=1.36

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. Universal Health Realty Income Trust interest coverage is 1.42, which is low.

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

Universal Health Realtyome Trust'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
=(326.6 + 43.809) / 97.28
=3.81

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.

Universal Health Realtyome Trust has a Z-score of 0.39, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.39 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.


Universal Health Realtyome Trust  (NYSE:UHT) 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.

Universal Health Realtyome Trust 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.


Universal Health Realtyome Trust Financial Strength Related Terms

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Universal Health Realtyome Trust (Universal Health Realtyome Trust) Business Description

Traded in Other Exchanges
Address
367 South Gulph Road, P.O. Box 61558, Universal Corporate Center, King of Prussia, PA, USA, 19406-0958
Universal Health Realty Income Trust is a healthcare REIT. The company is engaged in the business of investing in and leasing healthcare and human service facilities through direct ownership or through joint ventures, which aggregate into a single reportable segment. The company actively manages a portfolio of healthcare and human service facilities. The revenue and net income are generated from the operation of the investment portfolio which is located throughout the United States.
Executives
Alan B Miller director, officer: Chairman, President and CEO 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Robert F Mccadden other: Trustee C/O PENN. REAL ESTATE INVESTMENT TRUST, 200 SOUTH BROAD STREET, PHILADELPHIA PA 19102
Rebecca A Guzman director 1201 NORTH MARKET STREET, SUITE 501, WILMINGTON DE 19801-1659
Karla J Peterson officer: Vice President 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Michael Allan Domb director 1845 WALNUT STREET, SUITE 2200, PHILADELPHIA PA 19103
James P Morey director 334 AUBREY ROAD, WYNNEWOOD PA 19096
Gayle L Capozzalo director 789 HOWARD AVENUE, 1059 CLINIC BUILDING, NEW HAVEN CT 06519
Charles F Boyle officer: Vice President and CFO 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Randall C Stein other: Trustee 940 HAVERFORD ROAD, BRYN MAWR PA 19010
Marc D Miller other: Trustee 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Cheryl K Ramagano officer: VP, Treasurer & Secretary 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Miles L Berger other: Trustee
Myles H Tanenbaum other: Trustee
Sussman Elliot J Md Mba other: Trustee
Dalton James E Jr other: Trustee 6505 EDINBURGH DR, NASHVILLE TN 37221

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