Golden Entertainment Inc (GDEN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.28 | 2.70 | 4.27 | 5.06 | 9.74 |
Golden Entertainment Inc has consistently maintained a strong solvency position over the years, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00 for the years 2020 to 2024. This suggests that the company does not rely heavily on debt to finance its operations and has a solid asset and equity base to support its activities.
Furthermore, the financial leverage ratio has shown a declining trend from 9.74 in 2020 to 2.28 in 2024. This indicates that the company has been successful in reducing its financial leverage over time, which is a positive sign regarding its ability to meet its financial obligations and indicates improved financial stability.
Overall, Golden Entertainment Inc's solvency ratios reflect a prudent financial management strategy focused on maintaining a healthy balance between debt and equity, ensuring long-term financial sustainability and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.09 | 6.07 | 2.33 | 3.55 | -0.98 |
The interest coverage ratio for Golden Entertainment Inc has shown fluctuations over the past five years. In December 2020, the company had negative interest coverage, indicating that its operating income was not sufficient to cover its interest expenses. However, this improved significantly by December 2021, reaching a ratio of 3.55, which suggests the company's operating earnings were able to cover its interest payments more than three times.
Subsequently, in December 2022 and 2024, the interest coverage ratios decreased to 2.33 and 3.09, respectively. This indicates a slight decrease in the company's ability to cover its interest expenses from its operating profits compared to the previous year.
The most notable improvement in interest coverage was seen in December 2023 when the ratio increased to 6.07. This significant increase suggests a substantial enhancement in the company's ability to meet its interest obligations from its operational earnings.
Overall, the trend in Golden Entertainment Inc's interest coverage ratio indicates some variability over the years, with notable improvements interspersed with slight declines.