Golden Entertainment Inc (GDEN)
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 | 107,678 | 397,953 | 147,947 | 223,372 | -67,440 |
| Interest expense | US$ in thousands | 34,884 | 65,515 | 63,490 | 62,853 | 69,110 |
| Interest coverage | 3.09 | 6.07 | 2.33 | 3.55 | -0.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $107,678K ÷ $34,884K
= 3.09
The interest coverage ratio for Golden Entertainment Inc has shown fluctuating trends over the past five years. In December 2020, the company's interest coverage was negative at -0.98, indicating that the company's earnings were insufficient to cover its interest expenses. However, there has been a notable improvement in the following years. By December 2021, the interest coverage ratio increased to 3.55, suggesting that the company's operating income was able to cover its interest payments more comfortably.
Subsequently, the interest coverage ratio decreased slightly to 2.33 in December 2022, but it still indicated that the company's earnings were sufficient to cover its interest obligations, albeit at a lower level than in the previous year. In December 2023, the interest coverage ratio significantly improved to 6.07, reflecting a notable increase in the company's ability to meet its interest expenses from its operating income.
However, by December 2024, there was a decline in the interest coverage ratio to 3.09, showing a decrease in the company's ability to cover its interest payments compared to the previous year. Overall, while there have been fluctuations in Golden Entertainment Inc's interest coverage ratio, the company has shown a general improvement in its ability to meet its interest obligations over the five-year period.
Peer comparison
Dec 31, 2024