Light & Wonder Inc (LNW)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 497,000 | 4,015,000 | 531,000 | -69,000 | 412,000 |
| Interest expense | US$ in thousands | 309,000 | 327,000 | 478,000 | 503,000 | 589,000 |
| Interest coverage | 1.61 | 12.28 | 1.11 | -0.14 | 0.70 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $497,000K ÷ $309,000K
= 1.61
The interest coverage ratio of Light & Wonder Inc has shown improvement over the years, indicating the company's ability to meet its interest obligations from its operating income. In 2023, the interest coverage ratio stands at 1.97, which means the company's operating income is nearly double its interest expenses. This improvement is significant compared to the ratios of 1.28 in 2022, 0.58 in 2021, 0.27 in 2020, and 1.02 in 2019. The trend suggests that the company's earnings are becoming more sufficient to cover its interest payments, reflecting enhanced financial stability and reduced risk of default on debt obligations.
Peer comparison
Dec 31, 2023