Community Healthcare Trust Inc (CHCT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 25,918 | 25,046 | 25,414 | 23,002 | 34,030 | 34,304 | 33,769 | 33,880 | 33,330 | 31,739 | 30,847 | 29,110 | 27,876 | 26,334 | 16,341 | 6,785 | -3,260 | -10,669 | -4,320 | 2,515 |
| Interest expense (ttm) | US$ in thousands | 17,792 | 16,237 | 14,624 | 13,239 | 11,873 | 11,198 | 10,958 | 10,939 | 10,542 | 9,877 | 9,153 | 8,600 | 8,620 | 9,009 | 9,428 | 9,496 | 9,301 | 8,605 | 7,765 | 7,085 |
| Interest coverage | 1.46 | 1.54 | 1.74 | 1.74 | 2.87 | 3.06 | 3.08 | 3.10 | 3.16 | 3.21 | 3.37 | 3.38 | 3.23 | 2.92 | 1.73 | 0.71 | -0.35 | -1.24 | -0.56 | 0.35 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $25,918K ÷ $17,792K
= 1.46
The interest coverage ratio for Community Healthcare Trust Inc has been gradually decreasing over the past quarters. In Q4 2022, the ratio was at its highest at 3.06, indicating that the company's earnings before interest and taxes were more than three times its interest expenses. However, as of Q4 2023, the ratio has decreased to 1.41, signaling a decrease in the company's ability to cover its interest payments with its earnings.
A decreasing trend in the interest coverage ratio could be a cause for concern as it may indicate that the company's ability to meet its interest obligations has weakened over time. This could be influenced by various factors such as changes in interest rates, increased debt levels, declining profitability, or other financial challenges faced by the company.
It would be advisable for stakeholders and investors to closely monitor Community Healthcare Trust Inc's financial performance and assess the reasons behind the decreasing interest coverage ratio to understand the company's financial health and ability to manage its debt obligations.
Peer comparison
Dec 31, 2023