Caesars Entertainment Corporation (CZR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,292,000 | 1,363,000 | 1,018,000 | -412,000 | 411,000 |
| Interest expense | US$ in thousands | 2,394,000 | 2,303,000 | 2,320,000 | 1,213,000 | 286,000 |
| Interest coverage | 0.96 | 0.59 | 0.44 | -0.34 | 1.44 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,292,000K ÷ $2,394,000K
= 0.96
Caesars Entertainment Inc's interest coverage ratio has shown fluctuations over the past five years. In 2023, the interest coverage ratio improved to 1.09 compared to the previous year, indicating the company's ability to cover its interest expenses with its operating income. However, it is still relatively close to 1, which means the company is just meeting its interest obligations.
In 2022 and 2021, the interest coverage ratios were 0.82 and 0.74, respectively, indicating a struggle to cover interest expenses with operating income. This suggests a higher financial risk for the company as it may have difficulty meeting its debt obligations.
In 2020, the interest coverage ratio was negative at -0.19, which is a concerning sign as it implies that the operating income was insufficient to cover the interest expenses, putting the company in a precarious financial position.
In 2019, the interest coverage ratio was relatively strong at 1.56, indicating the company's ability to comfortably cover its interest expenses with its operating income.
Overall, Caesars Entertainment Inc's interest coverage has shown volatility over the years, with some instances of weak coverage ratios, particularly in 2020, highlighting the importance of monitoring the company's ability to meet its debt obligations moving forward.
Peer comparison
Dec 31, 2023