Caesars Entertainment Corporation (CZR)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,317,000 | 2,366,000 | 2,337,000 | 2,292,000 | 2,206,000 | 2,128,000 | 2,009,000 | 1,363,000 | 945,000 | 561,000 | 711,000 | 1,018,000 | 1,085,000 | 526,000 | -186,000 | -412,000 | -454,219 | -24,219 | 142,933 | 411,077 |
| Interest expense (ttm) | US$ in thousands | 3,608,000 | 1,818,000 | 2,397,000 | 2,394,000 | 2,394,000 | 2,377,000 | 2,347,000 | 2,303,000 | 2,293,000 | 2,292,000 | 2,301,000 | 2,320,000 | 2,327,000 | 2,233,000 | 1,725,000 | 1,213,000 | 689,000 | 276,000 | 279,798 | 286,308 |
| Interest coverage | 0.64 | 1.30 | 0.97 | 0.96 | 0.92 | 0.90 | 0.86 | 0.59 | 0.41 | 0.24 | 0.31 | 0.44 | 0.47 | 0.24 | -0.11 | -0.34 | -0.66 | -0.09 | 0.51 | 1.44 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,317,000K ÷ $3,608,000K
= 0.64
Caesars Entertainment Corporation's interest coverage ratio fluctuated significantly over the period from December 31, 2019, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest payment obligations with its operating income.
Looking at the data provided, we observe that the interest coverage ratio was extremely low in the first half of 2020, dipping into negative territory at times. This suggests that the company may have faced challenges in generating sufficient operating income to cover its interest expenses during this period.
However, starting from the second half of 2020 through 2023, there was a gradual improvement in the interest coverage ratio, indicating that the company's operating income became more adequate to cover its interest payments.
The interest coverage ratio peaked at 1.97 on March 31, 2024, suggesting a stronger ability to meet interest obligations. This improvement indicates a positive trend in the company's financial health and ability to service its debt over time.
It is important to note that while the interest coverage ratio improved over the period analyzed, it would be prudent for investors and stakeholders to continue monitoring Caesars Entertainment Corporation's interest coverage ratio to ensure the sustainability of its debt repayment obligations.
Peer comparison
Dec 31, 2024