Community Healthcare Trust Inc (CHCT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 945,412 | 876,425 | 754,233 | 668,402 | 562,531 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $945,412K
= 0.00
Community Healthcare Trust Inc's debt-to-assets ratio has been increasing gradually over the past five years, indicating a higher reliance on debt financing relative to its asset base. The ratio has moved from 0.35 in 2019 to 0.43 in 2023. This trend suggests that the company has been taking on more debt relative to its total assets.
A higher debt-to-assets ratio may indicate increased financial risk for the company, as a significant portion of its assets are funded by debt. However, it is also important to consider the industry norms and the company's specific circumstances when evaluating the significance of this ratio.
Overall, the steady increase in the debt-to-assets ratio for Community Healthcare Trust Inc warrants further investigation into the reasons behind the rising debt levels and whether it aligns with the company's strategic goals and financial stability.
Peer comparison
Dec 31, 2023