Golden Entertainment Inc (GDEN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 37,956 | 32,023 | 349,004 | 375,248 | 397,445 | 426,078 | 137,985 | 147,723 | 147,630 | 147,034 | 156,024 | 230,693 | 224,101 | 189,164 | 154,007 | -27,686 | -67,440 | -55,905 | -55,825 | 9,511 |
| Interest expense (ttm) | US$ in thousands | 34,884 | 40,425 | 47,772 | 57,965 | 65,515 | 70,270 | 70,673 | 66,608 | 63,490 | 60,666 | 60,492 | 61,923 | 62,853 | 65,287 | 66,174 | 66,412 | 69,110 | 69,749 | 72,103 | 74,831 |
| Interest coverage | 1.09 | 0.79 | 7.31 | 6.47 | 6.07 | 6.06 | 1.95 | 2.22 | 2.33 | 2.42 | 2.58 | 3.73 | 3.57 | 2.90 | 2.33 | -0.42 | -0.98 | -0.80 | -0.77 | 0.13 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $37,956K ÷ $34,884K
= 1.09
Golden Entertainment Inc's interest coverage ratio has fluctuated significantly over the years, indicating varying levels of ability to cover its interest payments with its earnings.
In the initial periods, from March 2020 to March 2021, the interest coverage ratio was consistently negative, suggesting that the company was not generating enough operating income to cover its interest expenses. This could be a concerning sign of financial distress and may indicate potential liquidity issues.
However, from June 2021 onwards, the interest coverage ratio improved and turned positive, reaching its highest point in December 2024. This indicates that the company's earnings were sufficient to cover its interest payments during these periods, reflecting a more stable financial position.
Despite the improvement in recent periods, the interest coverage ratio experienced a significant decline in September 2024, dropping to a relatively low level. This could signal a potential strain on the company's ability to meet its interest obligations with its operating income, highlighting the need for careful monitoring of its financial performance.
Overall, while the company has shown some improvement in its ability to cover interest expenses in recent periods, continued scrutiny and proactive financial management may be necessary to ensure sustainable financial health in the future.
Peer comparison
Dec 31, 2024