Boyd Gaming Corporation (BYD)

Interest coverage

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 924,154 980,055 803,381 59,470 439,591
Interest expense US$ in thousands 171,247 151,249 199,442 230,484 237,465
Interest coverage 5.40 6.48 4.03 0.26 1.85

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $924,154K ÷ $171,247K
= 5.40

Boyd Gaming Corp.'s interest coverage has shown variations over the past five years. It increased from 2.01 in 2019 to 7.88 in 2022, indicating a substantial improvement in the company's ability to cover its interest obligations. However, there was a slight decrease in 2023 to 6.85, which is still a favorable level. The lowest point was in 2020 with an interest coverage of 0.95, signaling a potential financial strain on meeting interest payments. Overall, the trend shows a general positive trajectory in the company's ability to meet its interest expenses with operating income.