Golden Entertainment Inc (GDEN)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 399,212 | 427,515 | 138,858 | 147,711 | 147,947 | 147,015 | 157,185 | 172,555 | 166,040 | 130,440 | 94,667 | -27,247 | -67,439 | -55,825 | -55,393 | 20,582 | 46,117 | 41,085 | 40,927 | 46,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 56,238 | 39,894 | 42,622 | 42,011 | 54,276 | 70,489 | 67,420 |
| Interest coverage | 6.09 | 6.08 | 1.96 | 2.22 | 2.33 | 2.42 | 2.60 | 2.79 | 2.64 | 2.00 | 1.43 | -0.41 | -0.98 | -0.99 | -1.39 | 0.48 | 1.10 | 0.76 | 0.58 | 0.68 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $399,212K ÷ $65,515K
= 6.09
The interest coverage ratio of Golden Entertainment Inc has shown a declining trend over the past eight quarters, starting at 2.81 in Q1 2022 and decreasing to 1.66 in Q4 2023. This downward trend indicates that the company's ability to cover its interest expenses with its earnings has weakened over time.
A lower interest coverage ratio suggests that Golden Entertainment Inc may be facing challenges in generating enough operating income to meet its interest obligations. While a ratio above 1 indicates that the company is able to cover its interest payments, the decreasing trend warrants attention as it may signify potential financial strain.
Investors and creditors closely monitor the interest coverage ratio as it provides insights into the company's financial health and debt repayment capacity. Golden Entertainment Inc may need to focus on improving its profitability and cash flow generation to enhance its ability to service its debt obligations in the future.
Peer comparison
Dec 31, 2023