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Welltower (NYSE:WELL) Financial Strength

: 4 (As of Dec. 2022)
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Welltower 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.

Welltower's Interest Coverage for the quarter that ended in Dec. 2022 was 1.32. Welltower's debt to revenue ratio for the quarter that ended in Dec. 2022 was 2.46. As of today, Welltower's Altman Z-Score is 1.23.


Competitive Comparison

For the REIT - Healthcare Facilities subindustry, Welltower'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.

   

Welltower Financial Strength Distribution

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

* The bar in red indicates where Welltower's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.



Welltower 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:

Welltower's Interest Expense for the months ended in Dec. 2022 was $-140 Mil. Its Operating Income for the months ended in Dec. 2022 was $186 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $14,964 Mil.

Welltower's Interest Coverage for the quarter that ended in Dec. 2022 is

Interest Coverage=-1*Operating Income (Q: Dec. 2022 )/Interest Expense (Q: Dec. 2022 )
=-1*185.619/-140.391
=1.32

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

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

Welltower's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 14963.912) / 6074.124
=2.46

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.

Welltower has a Z-score of 1.23, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.23 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.


Welltower  (NYSE:WELL) 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.

Welltower has the Financial Strength Rank of 4.


Welltower Financial Strength Related Terms

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


Welltower (NYSE:WELL) Business Description

Welltower logo
Address
4500 Dorr Street, Toledo, OH, USA, 43615
Welltower owns a diversified healthcare portfolio of over 1,900 in-place properties spread across the senior housing, medical office, and skilled nursing/post-acute care sectors. The portfolio includes over 100 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 that of the United States.
Executives
John F. Burkart officer: EVP-Chief Operating Officer C/O ESSEX PROPERTY TRUST INC., 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Ade J. Patton director 4500 DORR STREET, TOLEDO DE 43515
Dennis G Lopez director 12700 HILL COUNTRY BOULEVARD, SUITE T-200, AUSTIN TX 78738
Philip L Hawkins director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Diana Reid director 4500 DORR STREET, TOLEDO OH 43615
Ayesha Menon officer: SVP - Strategic Investments 4500 DORR STREET, TOLEDO OH 43615
Timothy Mchugh officer: SVP - Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43515
Kathryn M Sullivan director PO BOX 98029, BATON ROUGE LA 70898-9029
Johnese Spisso director 4500 DORR STREET, TOLEDO OH 43615
Karen B Desalvo director 500 W MAIN STREET, LOUISVILLE KY 40202
Joshua Fieweger officer: Vice President, Controller 4500 DORR STREET, TOLEDO X1 43615
John Goodey officer: Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43615
Gary Whitelaw director 1 YORK STREET, TORONTO A6 M5J0B6
Shankh Mitra officer: SVP, Finance & Investments 4500 DORR STREET, TOLEDO OH 43615
Matthew Grant Mcqueen officer: SVP, Gen.Counsel & Secretary 4500 DORR STREET, TOLEDO OH 43615

Welltower (NYSE:WELL) Headlines

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