Omega Healthcare Investors (Omega Healthcare Investors) Interest Coverage

: 1.83 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Omega Healthcare Investors's Operating Income for the three months ended in Dec. 2023 was $109.0 Mil. Omega Healthcare Investors's Interest Expense for the three months ended in Dec. 2023 was $-59.4 Mil. Omega Healthcare Investors's interest coverage for the quarter that ended in Dec. 2023 was 1.83. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Omega Healthcare Investors's Interest Coverage or its related term are showing as below:

OHI' s Interest Coverage Range Over the Past 10 Years
Min: 1.68 Med: 2.59 Max: 3.29
Current: 2.08

OHI's Interest Coverage is ranked worse than
67.8% of 677 companies
in the REITs industry
Industry Median: 2.98 vs OHI: 2.08

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Omega Healthcare Investors Interest Coverage Historical Data

The historical data trend for Omega Healthcare Investors's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Omega Healthcare Investors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.66

2.02

2.41

1.68

2.08

Omega Healthcare Investors Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	1.99	2.20	2.29	1.83

Competitive Comparison

For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Omega Healthcare Investors Interest Coverage Distribution

For the REITs industry and Real Estate sector, Omega Healthcare Investors's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Omega Healthcare Investors's Interest Coverage falls into.

Omega Healthcare Investors Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Omega Healthcare Investors's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Omega Healthcare Investors's Interest Expense was $-235.5 Mil. Its Operating Income was $489.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,046.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	488.973	/	-235.529
	=	2.08

Omega Healthcare Investors's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Omega Healthcare Investors's Interest Expense was $-59.4 Mil. Its Operating Income was $109.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,046.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	108.988	/	-59.429
	=	1.83

The higher the ratio, the stronger the company's Financial Strength is.

Omega Healthcare Investors (NYSE:OHI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Omega Healthcare Investors Interest Coverage Related Terms

Thank you for viewing the detailed overview of Omega Healthcare Investors's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Omega Healthcare Investors (Omega Healthcare Investors) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Omega Healthcare Investors Inc (NYSE:OHI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WX4:Germany WX4:Germany

Address

303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030

Website

https://www.omegahealthcare.com

Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States real estate markets. Omega's portfolio focuses on long-term healthcare facilities. The company maintains dual goals of increasing its returns to investors while also maintaining a high level of care for residents. Omega works to obtain contractual rent escalations under long-term leases, along with fixed-rate mortgage loans. The company considers merger and acquisition investment as a component of its operational growth strategy.

Executives

Gail D Makode	officer: Chief Legal Officer	ONE SOUND SHORE DR, SUITE 304, GREENWICH CT 06830
Kapila K Anand	director	C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
Neal Ballew	officer: Chief Accounting Officer	303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Burke W Whitman	director	13455 NOEL ROAD # 2000, DALLAS TX 75240
Lisa Egbuonu-davis	director	C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Steven J Insoft	officer: Chief Corp Development Officer
Daniel J Booth	officer: Chief Operating Officer	9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Robert O Stephenson	officer: Chief Financial Officer	C/O OMEGA HEALTHCARE INVESTORS, 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
C Taylor Pickett	director, officer: Chief Executive Officer	C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Kevin J Jacobs	director	7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Michael Ritz	officer: Chief Accounting Officer	9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21131
Craig R Callen	director	7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Ben W Perks	director
Bernard J Korman	director	OMEGA HEALTHCARE INVESTORS INC, ANN ARBOR MI 48108
Craig M Bernfield	director	303 WEST MADISON STREET, SUITE 2400, CHICAGO IL 60606