Community Healthcare Trust Inc (CHCT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.84 | 1.76 | 1.63 | 1.55 | 1.59 |
Community Healthcare Trust Inc's solvency ratios show a consistent trend of increasing leverage over the last five years. The debt-to-assets ratio has steadily risen from 0.32 in 2019 to 0.43 in 2023, indicating that the company's proportion of debt to total assets has been increasing. Similarly, the debt-to-capital ratio has also shown an upward trajectory, from 0.33 in 2019 to 0.44 in 2023.
The debt-to-equity ratio, which measures the company's reliance on debt financing compared to equity, has also shown an increasing trend over the same period, from 0.49 in 2019 to 0.79 in 2023. This implies that the company has been increasingly relying on debt to finance its operations and growth.
The financial leverage ratio, a measure of the company's ability to meet its financial obligations through debt, has also been on the rise, indicating a greater reliance on debt financing. The ratio has increased from 1.55 in 2019 to 1.84 in 2023.
Overall, the increasing trend in these solvency ratios suggests that Community Healthcare Trust Inc has been taking on more debt relative to its assets, capital, and equity over the years. This may indicate a higher financial risk and potential challenges in meeting debt obligations in the future if the trend continues. It is important for investors and stakeholders to closely monitor the company's leverage levels and financial health going forward.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.46 | 2.87 | 3.16 | 3.23 | 2.06 |
The interest coverage ratio for Community Healthcare Trust Inc has shown a declining trend over the past five years, from 3.24 in 2020 to 1.41 in 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened. A ratio below 1 suggests that the company is not generating enough operating income to meet its interest obligations. The decreasing trend in interest coverage may raise concerns about the company's financial health and ability to service its debt obligations comfortably in the future. It is important for the company to closely monitor and manage its interest expenses and find ways to improve its operating income to enhance its financial stability.