Boyd Gaming Corporation (BYD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.48 | 0.48 | 0.59 | 0.56 |
| Debt-to-capital ratio | 0.62 | 0.65 | 0.66 | 0.77 | 0.75 |
| Debt-to-equity ratio | 1.65 | 1.89 | 1.94 | 3.44 | 2.96 |
| Financial leverage ratio | 3.60 | 3.97 | 4.04 | 5.84 | 5.26 |
Boyd Gaming Corp.'s solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. The trends observed over the years provide insights into the company's financial health and leverage position.
1. Debt-to-assets ratio: The trend shows a decline from 0.57 in 2019 to 0.46 in 2023, indicating that the proportion of assets financed by debt has decreased. This suggests a more conservative approach to debt management, resulting in a stronger asset base relative to debt levels.
2. Debt-to-capital ratio: The decreasing trend from 0.75 in 2019 to 0.63 in 2023 indicates that Boyd Gaming Corp. has reduced its reliance on debt capital relative to the total capital structure. This implies a more balanced mix of debt and equity financing, enhancing the company's long-term financial stability.
3. Debt-to-equity ratio: The downward trend from 2.98 in 2019 to 1.67 in 2023 reflects a significant improvement in the company's capital structure. A lower ratio signifies reduced financial risk and a stronger equity position, indicating improved solvency and financial health.
4. Financial leverage ratio: The declining trend from 5.26 in 2019 to 3.60 in 2023 demonstrates a reduction in Boyd Gaming Corp.'s financial leverage. A lower financial leverage ratio signifies lower reliance on debt to finance assets, indicating improved financial strength and lower risk of default.
Overall, the decreasing trends in these solvency ratios show that Boyd Gaming Corp. has been actively managing its debt levels and improving its capital structure over the years. The company appears to be in a better solvency position, with a stronger ability to meet its financial obligations and withstand economic challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.40 | 6.48 | 4.03 | 0.26 | 1.85 |
Boyd Gaming Corp.'s interest coverage ratio has shown variability over the past five years. The ratio experienced a significant improvement from 2020 to 2021, indicating the company's ability to cover its interest expenses with operating income increased substantially. However, in 2020, the interest coverage ratio was notably low, suggesting the company's operating income was insufficient to cover its interest expenses adequately.
Overall, the trend in Boyd Gaming Corp.'s interest coverage ratio has been positive in recent years, indicating a stronger ability to meet its interest obligations with operating profits. This improvement signifies the company's enhanced financial health and reduced risk related to its debt obligations, which is favorable for investors and creditors.