Light & Wonder Inc (LNW)

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	498,000	463,000	696,000	3,966,000	4,015,000	3,911,000	3,545,000	251,000	110,000	96,000	32,000	-92,000	-128,000	-222,000	-49,000	135,000	290,000	715,200	367,200	338,200
Interest expense (ttm)	US$ in thousands	309,000	304,000	294,000	286,000	327,000	372,000	424,000	473,000	478,000	484,000	495,000	500,000	503,000	521,000	536,000	559,000	589,000	595,900	597,300	596,400
Interest coverage		1.61	1.52	2.37	13.87	12.28	10.51	8.36	0.53	0.23	0.20	0.06	-0.18	-0.25	-0.43	-0.09	0.24	0.49	1.20	0.61	0.57

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $498,000K ÷ $309,000K
= 1.61

Light & Wonder Inc's interest coverage ratio has been on an upward trend over the last eight quarters, starting at a low point of 0.29 in Q2 2022 and steadily increasing to 1.97 in Q4 2023. This indicates that the company's earnings before interest and taxes (EBIT) are almost double its interest expenses in the most recent quarter, suggesting a healthier financial position in terms of its ability to meet its interest obligations.

The consistent improvement in the interest coverage ratio from Q2 2022 to Q4 2023 reflects a positive trend in Light & Wonder Inc's financial stability and ability to service its debt. The company seems to be in a better position to cover its interest expenses with operating profits, which is a key indicator of financial health and solvency.

Overall, the increasing trend in the interest coverage ratio indicates that Light & Wonder Inc has been progressively improving its ability to meet its interest payments, which may be perceived positively by investors and creditors as a sign of financial strength and stability.