Community Healthcare Trust Inc (CHCT)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 945,412 | 955,126 | 900,466 | 886,294 | 876,425 | 811,929 | 786,034 | 761,230 | 754,233 | 747,592 | 745,467 | 735,311 | 668,402 | 615,672 | 612,304 | 596,754 | 562,531 | 533,072 | 490,500 | 456,730 |
| Total stockholders’ equity | US$ in thousands | 513,256 | 522,294 | 505,325 | 494,515 | 496,814 | 478,486 | 472,962 | 471,114 | 462,112 | 461,671 | 457,056 | 450,086 | 429,916 | 409,621 | 387,103 | 367,775 | 353,411 | 300,947 | 279,120 | 269,683 |
| Financial leverage ratio | 1.84 | 1.83 | 1.78 | 1.79 | 1.76 | 1.70 | 1.66 | 1.62 | 1.63 | 1.62 | 1.63 | 1.63 | 1.55 | 1.50 | 1.58 | 1.62 | 1.59 | 1.77 | 1.76 | 1.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $945,412K ÷ $513,256K
= 1.84
Community Healthcare Trust Inc's financial leverage ratio has been steadily increasing over the past few quarters, indicating a trend towards higher leverage. The ratio has improved from 1.62 in Q1 2022 to 1.84 in Q4 2023.
A financial leverage ratio above 1 indicates that the company is using debt to finance its operations. The increasing trend in this ratio suggests that Community Healthcare Trust Inc is becoming more reliant on debt to fund its activities. While leverage can amplify returns, it also increases financial risk, as the company must meet interest payments and repay principal amounts.
Investors and creditors may view the rising financial leverage ratio with caution, as it could potentially impact the company's financial stability and ability to weather economic downturns. It is crucial for the company to carefully manage its debt levels and ensure it has the cash flow to service its debt obligations in the long term.
Peer comparison
Dec 31, 2023