Caesars Entertainment Corporation (CZR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,247,000 | 2,292,000 | 1,363,000 | 1,018,000 | -412,000 |
| Interest expense | US$ in thousands | 2,438,000 | 2,394,000 | 2,303,000 | 2,320,000 | 1,213,000 |
| Interest coverage | 0.92 | 0.96 | 0.59 | 0.44 | -0.34 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,247,000K ÷ $2,438,000K
= 0.92
The interest coverage ratio for Caesars Entertainment Corporation has shown a varied trend over the past five years. Starting at a concerning negative value of -0.34 in December 31, 2020, the company's ability to cover its interest expenses with operating income was inadequate. However, there has been a gradual improvement in subsequent years, with the interest coverage ratio increasing to 0.44 by December 31, 2021, and further to 0.59 by December 31, 2022.
By December 31, 2023, the interest coverage ratio reached 0.96, indicating a healthier position as the company's operating income became more sufficient to cover its interest payments. However, there was a slight decrease to 0.92 by December 31, 2024, but the coverage remained relatively stable compared to the previous year.
It is important for stakeholders to closely monitor Caesars Entertainment Corporation's interest coverage ratio to ensure that the company maintains a level that signifies financial stability and risk management in its capital structure.
Peer comparison
Dec 31, 2024