Boyd Gaming Corporation (BYD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 929,412 | 924,154 | 980,055 | 861,137 | 3,892 |
| Interest expense | US$ in thousands | 177,409 | 171,247 | 151,249 | 199,442 | 230,484 |
| Interest coverage | 5.24 | 5.40 | 6.48 | 4.32 | 0.02 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $929,412K ÷ $177,409K
= 5.24
Boyd Gaming Corporation's interest coverage ratio has shown significant improvement over the past few years. As of December 31, 2020, the interest coverage was a concerning 0.02, indicating that the company's operating income was only able to cover 2% of its interest expenses. However, by December 31, 2021, the interest coverage had improved significantly to 4.32, suggesting that the company's earnings were sufficient to cover its interest payments more than four times over.
The trend continued to improve over the following years, with interest coverage ratios of 6.48, 5.40, and 5.24 as of December 31, 2022, 2023, and 2024, respectively. These ratios indicate a healthy ability to meet interest obligations from operating income, providing a buffer against potential financial distress.
Overall, the steady improvement in Boyd Gaming Corporation's interest coverage ratio reflects a strengthening financial position and increased ability to service its debt obligations.
Peer comparison
Dec 31, 2024