Golden Entertainment Inc (GDEN)

Solvency ratios

	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
Debt-to-assets ratio	0.19	0.22	0.22	0.61	0.60	0.61	0.62	0.62	0.63	0.64	0.66	0.71	0.73	0.71	0.71	0.70	0.65	0.67	0.66	0.65
Debt-to-capital ratio	0.34	0.38	0.48	0.72	0.72	0.73	0.74	0.75	0.76	0.77	0.80	0.87	0.88	0.87	0.86	0.84	0.80	0.79	0.79	0.78
Debt-to-equity ratio	0.51	0.61	0.91	2.58	2.58	2.66	2.87	3.00	3.21	3.44	3.98	6.70	7.11	6.42	6.30	5.14	3.90	3.81	3.71	3.50
Financial leverage ratio	2.70	2.83	4.06	4.26	4.27	4.39	4.62	4.81	5.06	5.38	6.02	9.43	9.74	9.01	8.92	7.35	6.01	5.71	5.59	5.36

The solvency ratios of Golden Entertainment Inc indicate the company's ability to meet its long-term financial obligations and the extent of its reliance on debt to finance its operations.

The debt-to-assets ratio has shown slight fluctuations but generally remained relatively stable around 0.60, indicating that approximately 60% of the company's assets are financed through debt. This suggests a moderate level of risk as the company relies significantly on borrowed funds to support its operations.

The debt-to-capital and debt-to-equity ratios both exhibit a more pronounced upward trend over the periods analyzed, reaching levels of 0.72 and 2.56 respectively in Q1 2023. These ratios indicate that over 70% of the company's capital and more than 250% of its equity are funded through debt, signaling a high level of financial leverage and potentially increasing the company's risk exposure.

The financial leverage ratio also demonstrates a consistent increase over time, reaching 4.26 in Q1 2023. This metric reflects the company's total debt in relation to its equity, highlighting a significant amount of financial risk associated with Golden Entertainment Inc's capital structure.

Overall, the evolving solvency ratios of Golden Entertainment Inc suggest a growing reliance on debt financing, which may raise concerns about the company's ability to manage its debt obligations effectively in the long term. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.

Coverage ratios

	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
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

Golden Entertainment Inc's interest coverage has shown a declining trend over the past few quarters, dropping from 2.81 in Q1 2022 to 1.66 in Q4 2023. This indicates that the company's ability to cover its interest payments with its earnings has weakened. An interest coverage ratio below 1 suggests that the company is not generating enough operating income to meet its interest expenses, which could signal financial distress. However, it is positive to note that the ratio has been above 1 in all the periods presented, indicating that the company has been able to meet its interest obligations.

The decreasing trend in the interest coverage ratio could be a cause for concern as it may indicate that the company's earnings are not growing at a pace that can comfortably cover its interest expenses. Investors and lenders typically prefer a higher interest coverage ratio as it signifies a lower risk of default. Golden Entertainment Inc may need to focus on improving its profitability and operating efficiency to strengthen its ability to cover interest payments in the future.