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.