Community Healthcare Trust Inc (CHCT)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 513,256 | 496,814 | 462,112 | 429,916 | 353,411 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $513,256K
= 0.00
The debt-to-equity ratio of Community Healthcare Trust Inc has shown an increasing trend over the past five years, indicating a growing reliance on debt financing compared to equity. The ratio has steadily risen from 0.55 in 2019 to 0.79 in 2023.
In 2023, the debt-to-equity ratio of 0.79 suggests that the company's financial structure is more heavily skewed towards debt, with 79% of its financing coming from debt and 21% from equity. This could potentially signal higher financial risk as a higher proportion of debt can lead to increased interest payments and potential financial strain, especially in economic downturns.
The consistent upward trend in the debt-to-equity ratio may be a reflection of the company's strategic decisions to utilize debt financing for expansion or growth opportunities. Investors and stakeholders should closely monitor this trend to assess the company's ability to manage its debt levels and financial obligations effectively.
Peer comparison
Dec 31, 2023