American Campus Communities (American Campus Communities) Interest Coverage : 2.46 (As of Mar. 2022)

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What is American Campus Communities Interest Coverage?

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. American Campus Communities's Operating Income for the three months ended in Mar. 2022 was $74 Mil. American Campus Communities's Interest Expense for the three months ended in Mar. 2022 was $-30 Mil. American Campus Communities's interest coverage for the quarter that ended in Mar. 2022 was 2.46. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for American Campus Communities's Interest Coverage or its related term are showing as below:

ACC's Interest Coverage is not ranked ^*
in the REITs industry.
Industry Median: 2.97
* Ranked among companies with meaningful Interest Coverage only.

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

American Campus Communities Interest Coverage Historical Data

The historical data trend for American Campus Communities'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.

* Premium members only.

American Campus Communities Interest Coverage Chart

American Campus Communities Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Interest Coverage

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2.22

1.72

1.77

1.24

1.37

American Campus Communities Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Interest Coverage	Get a 7-Day Free Trial															0.66	0.59	2.57	2.46	1.15

Competitive Comparison of American Campus Communities's Interest Coverage

For the REIT - Residential subindustry, American Campus Communities'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.

American Campus Communities's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Campus Communities's Interest Coverage distribution charts can be found below:

* The bar in red indicates where American Campus Communities's Interest Coverage falls into.

American Campus Communities 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.

American Campus Communities's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, American Campus Communities's Interest Expense was $-118 Mil. Its Operating Income was $161 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,006 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	161.093	/	-117.793
	=	1.37

American Campus Communities's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, American Campus Communities's Interest Expense was $-30 Mil. Its Operating Income was $74 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,009 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2022 )	/	Interest Expense (Q: Mar. 2022 )
	=	-1	*	73.995	/	-30.061
	=	2.46

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

American Campus Communities (NYSE:ACC) 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 .

American Campus Communities Interest Coverage Related Terms

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

American Campus Communities (American Campus Communities) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Campus Communities Inc (NYSE:ACC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

12700 Hill Country Boulevard, Suite T-200, Austin, TX, USA, 78738

Website

http://www.americancampus.com

American Campus Communities Inc or ACC, is a real estate investment trust engaged in the acquisition, management, and development of student housing properties near universities and colleges throughout the United States. The company segments its activities into Owned properties, On-campus participating properties, Development services, and Property management services. The vast majority of ACC's real estate portfolio is made up of wholly-owned properties in terms of total units. The company also derives nearly all of its income in the form of rental revenue from leasing its wholly-owned real estate assets to students through short-term leases. ACC is one of the owners of student housing properties in the U.S. in terms of the total number of beds owned.

Executives

John T Rippel	director	12700 HILL COUNTRY BLVD T-200 AUSTIN TX 78738
Bayless William C Jr	director, officer: President & CEO	12700 HILL COUNTRY BLVD. SUITE T-200 AUSTIN TX 78738
Wilhelm James E Iii	officer: EVP PublicPrivate Transactions	805 LAS CIMAS PARKWAY SUITE 400 AUSTIN TX 78746
Lonnie Marietta Ledbetter	officer: EVP, Chief Purpose & Inclusion	12700 HILL COUNTRY BLVD T-200 AUSTIN TX 78738
Cardenas Jorge De	officer: EVP & Chief Technology Officer	12700 HILL COUNTRY BLVD STE T200 AUSTIN TX 78738
Hopke James Clarence Jr	officer: EVP, Proj. Mgmt & Construction	805 LAS CIMAS PARKWAY SUITE 400 AUSTIN TX 78746
Alison Hill	director	12700 HILL COUNTRY BOULEVARD SUITE T-200 AUSTIN TX 78738
Herman E Bulls	director	JONES LANG LASALLE, 1801 K STREET NW SUITE 1000, WASHINGTON DC 20006
Craig Leupold	director	12700 HILL COUNTRY BOULEVARD SUITE T-200 AUSTIN TX 78738
Oliver Luck	director	12700 HILL COUNTRY BLVD, STE T-200, AUSTIN TX 78738
Sublett Carla Pineyro	director	12700 HILL COUNTRY BLVD T-200 AUSTIN TX 78738
Mary Egan	director	520 ZANG STREET, SUITE D, BROOMFIELD CO 80021
Jennifer Beese	officer: E.V.P, Operation & Leasing	12700 HILL COUNTRY BLVD SUITE T-200 AUSTIN TX 78738
Chandlee William Blakeley Iii	director	2801 GREENLEE DRIVE AUSTIN TX 78703
Daniel Perry	officer: Executive VP, Capital Markets	12700 HILL COUNTRY BLVD., SUITE T-200 AUSTIN TX 78733