Caesars Entertainment Corporation (CZR)

Caesars Entertainment Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the past five years, with values ranging from 0.63 to 0.76. This ratio indicates that on average, 75% of the company's assets are financed through debt.

The debt-to-capital ratio has also remained fairly consistent, hovering around 0.85 with a slight increase in 2022. This ratio suggests that about 85% of the company's capital structure is comprised of debt.

The debt-to-equity ratio has shown fluctuations over the years, ranging from 3.17 to 6.83. The significant increase in 2022 might be concerning as it indicates higher financial risk, although the ratio improved in 2023. The 2023 ratio of 5.50 suggests that Caesars has on average 5.5 times more debt than equity.

The financial leverage ratio, which takes into account the total debt relative to equity, has also varied during the period under review. The ratio ranged from 5.05 to 9.03, indicating that the company's leverage fluctuated, with a lower ratio in 2019 and a higher ratio in 2022. The 2023 ratio of 7.33 signifies that the company has a higher financial leverage compared to the previous year.

Overall, Caesars Entertainment Inc's solvency ratios show a mix of stable and fluctuating trends in debt levels and financial leverage over the past five years. The debt levels and leverage should be carefully monitored to ensure the company's long-term financial stability and continued ability to meet its obligations.

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Coverage ratios

Caesars Entertainment Inc's interest coverage ratio has shown fluctuations over the past five years. The ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A ratio below 1 suggests that the company is not generating enough operating income to cover its interest expenses, indicating financial distress.

In 2023, the interest coverage ratio improved to 1.09 from 0.82 in 2022, indicating that the company's EBIT was sufficient to cover its interest expenses. However, the ratio is still relatively low, which may raise concerns about the company's ability to comfortably meet its interest obligations.

Looking back at the previous years, the interest coverage ratio was 0.74 in 2021, indicating a slight improvement from the negative ratio of -0.19 in 2020, where the company's EBIT was insufficient to cover its interest expenses. The significant increase in the ratio to 1.56 in 2019 showed a stronger ability to cover interest expenses.

Overall, the trend in Caesars Entertainment Inc's interest coverage ratio shows variability, with fluctuations that may reflect changes in the company's financial performance and ability to generate earnings to cover its interest expenses. Investors and creditors may closely monitor this metric to assess the company's financial stability and risk of default.