Caesars Entertainment Corporation (CZR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 33,366,000 | 33,527,000 | 38,031,000 | 36,385,000 | 5,641,000 |
| Total stockholders’ equity | US$ in thousands | 4,552,000 | 3,713,000 | 4,480,000 | 5,016,000 | 1,117,000 |
| Financial leverage ratio | 7.33 | 9.03 | 8.49 | 7.25 | 5.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $33,366,000K ÷ $4,552,000K
= 7.33
Caesars Entertainment Inc's financial leverage ratio has shown fluctuating trends over the past five years. The ratio was highest in 2022 at 9.03, indicating a higher level of financial leverage. However, in 2023, the ratio decreased to 7.33, showing a reduction in financial leverage compared to the previous year.
Despite the fluctuations, the company's financial leverage ratio has generally been on an upward trajectory since 2019, suggesting an increasing reliance on debt to finance its operations and growth. This trend can indicate potential risks associated with higher debt levels, such as increased interest payments and financial vulnerability in periods of economic downturns.
It would be important for Caesars Entertainment Inc to carefully manage its debt levels to ensure sustainable financial health and mitigate the risks associated with high leverage ratios. Regular monitoring and adjustment of their capital structure may be necessary to maintain a balanced and optimal level of leverage.
Peer comparison
Dec 31, 2023