Boyd Gaming Corporation (BYD)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 924,154 | 1,035,597 | 1,055,472 | 1,034,544 | 980,055 | 899,644 | 883,709 | 859,500 | 803,381 | 767,648 | 676,326 | 388,935 | 59,470 | -10,305 | -28,940 | 184,821 | 439,591 | 453,667 | 411,938 | 381,634 |
| Interest expense (ttm) | US$ in thousands | 171,247 | 170,057 | 163,706 | 157,457 | 151,249 | 151,375 | 160,545 | 179,210 | 199,442 | 215,236 | 232,452 | 236,529 | 230,484 | 228,681 | 225,955 | 227,980 | 237,465 | 242,524 | 237,533 | 221,259 |
| Interest coverage | 5.40 | 6.09 | 6.45 | 6.57 | 6.48 | 5.94 | 5.50 | 4.80 | 4.03 | 3.57 | 2.91 | 1.64 | 0.26 | -0.05 | -0.13 | 0.81 | 1.85 | 1.87 | 1.73 | 1.72 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $924,154K ÷ $171,247K
= 5.40
To analyze Boyd Gaming Corp.'s interest coverage, we calculate the interest coverage ratio by dividing earnings before interest and taxes (EBIT) by interest expense. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations.
Based on the data provided in the table, Boyd Gaming Corp.'s interest coverage ratio has been consistently improving over the quarters, from 5.52 in Q1 2022 to 8.97 in Q1 2023. This upward trend suggests that the company's EBIT is sufficient to cover its interest expenses comfortably.
The average interest coverage ratio for the most recent four quarters is 8.15, indicating that Boyd Gaming Corp. is in a strong financial position in terms of meeting its interest obligations. This steady improvement in interest coverage signifies the company's ability to generate enough earnings to comfortably service its debt.
Overall, Boyd Gaming Corp.'s interest coverage has shown positive growth and stability, reflecting a healthy financial position and adequate profitability to cover interest expenses.
Peer comparison
Dec 31, 2023