Golden Entertainment Inc (GDEN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.60 | 0.63 | 0.73 | 0.65 |
| Debt-to-capital ratio | 0.34 | 0.72 | 0.76 | 0.88 | 0.80 |
| Debt-to-equity ratio | 0.51 | 2.58 | 3.21 | 7.11 | 3.90 |
| Financial leverage ratio | 2.70 | 4.27 | 5.06 | 9.74 | 6.01 |
Solvency ratios are crucial indicators of a company's ability to meet its long-term financial obligations. Analyzing the solvency ratios of Golden Entertainment Inc over the past five years reveals important insights into the company's financial health:
1. Debt-to-assets ratio: This ratio assesses the proportion of the company's assets financed by debt. Golden Entertainment Inc's debt-to-assets ratio has shown a decreasing trend from 0.72 in 2020 to 0.46 in 2023. A lower ratio indicates that the company is relying less on debt to fund its operations, which is generally considered a positive sign for solvency.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the proportion of a company's capital that comes from debt. Golden Entertainment Inc's decreasing trend in this ratio, from 0.88 in 2020 to 0.55 in 2023, indicates that the company has been reducing its reliance on debt to finance its operations. This decreasing trend is a positive signal for the company's solvency.
3. Debt-to-equity ratio: This ratio compares a company's total debt to its shareholders' equity, reflecting the leverage used by the company. Golden Entertainment Inc's debt-to-equity ratio has shown a significant improvement, decreasing from 7.06 in 2020 to 1.23 in 2023. A lower debt-to-equity ratio indicates a lower level of financial risk and better solvency.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. Golden Entertainment Inc's decreasing trend in this ratio, from 9.74 in 2020 to 2.70 in 2023, signifies that the company has been reducing its leverage over the years, which is a positive indicator of improved solvency.
In summary, Golden Entertainment Inc has shown a positive trend in its solvency ratios over the past five years, indicating a stronger financial position and reduced reliance on debt financing. The company's improved solvency ratios suggest better long-term financial stability and ability to meet its obligations effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 95.30 | 35.11 | 36.10 | -13.15 | 9.34 |
The interest coverage ratio for Golden Entertainment Inc has fluctuated over the past five years. In 2023, the interest coverage ratio was 1.66, which indicates that the company generated 1.66 times more operating income than the interest expenses it incurred during the year. This represents a decrease from the previous year, where the ratio was higher at 2.35.
Looking back to 2021 and 2020, the interest coverage ratios were relatively stable at 2.67 and -0.41, respectively. A ratio of -0.41 in 2020 suggests that the company's operating income was insufficient to cover its interest expenses for that period, indicating financial distress.
Furthermore, in 2019, the interest coverage ratio stood at 0.71, showing a slight improvement compared to 2020 but still below the ideal threshold of 1. This indicates that the company's ability to cover its interest obligations improved slightly in 2019.
Overall, the trend in the interest coverage ratio for Golden Entertainment Inc shows some variability, with the company experiencing fluctuations in its ability to cover interest expenses with operating income over the past five years. It is important for the company to maintain a healthy interest coverage ratio to demonstrate its ability to meet its debt obligations and sustain financial stability.