Caesars Entertainment Corporation (CZR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,590,000 | 33,366,000 | 33,527,000 | 38,031,000 | 36,385,000 |
| Total stockholders’ equity | US$ in thousands | 4,157,000 | 4,552,000 | 3,713,000 | 4,480,000 | 5,016,000 |
| Financial leverage ratio | 7.84 | 7.33 | 9.03 | 8.49 | 7.25 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,590,000K ÷ $4,157,000K
= 7.84
The financial leverage ratio of Caesars Entertainment Corporation has shown an increasing trend from 7.25 in 2020 to 8.49 in 2021 and further to 9.03 in 2022, indicating a higher reliance on debt to finance its operations during those years. However, there was a slight decrease in the ratio to 7.33 in 2023, followed by a slight increase to 7.84 in 2024.
The upward trend in the financial leverage ratio suggests that the company has been taking on more debt relative to its equity over the years, which may indicate an increase in financial risk and potential vulnerability to economic downturns or changes in interest rates. It is important for stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations and sustain its financial health in the long term.
Peer comparison
Dec 31, 2024