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American Campus Communities (American Campus Communities) Financial Strength : 4 (As of Mar. 2022)


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What is American Campus Communities Financial Strength?

American Campus Communities has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

American Campus Communities's Interest Coverage for the quarter that ended in Mar. 2022 was 2.46. American Campus Communities's debt to revenue ratio for the quarter that ended in Mar. 2022 was 3.66. As of today, American Campus Communities's Altman Z-Score is 0.00.


Competitive Comparison of American Campus Communities's Financial Strength

For the REIT - Residential subindustry, American Campus Communities's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the REITs Industry

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

* The bar in red indicates where American Campus Communities's Financial Strength falls into.



American Campus Communities Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

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

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

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.

2. Debt to revenue ratio. The lower, the better.

American Campus Communities's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 4008.523) / 1094.984
=3.66

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

American Campus Communities has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* 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.


American Campus Communities  (NYSE:ACC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

American Campus Communities has the Financial Strength Rank of 4.


American Campus Communities Financial Strength Related Terms

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


American Campus Communities (American Campus Communities) Business Description

Traded in Other Exchanges
N/A
Address
12700 Hill Country Boulevard, Suite T-200, Austin, TX, USA, 78738
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