Las Vegas Sands Corp (LVS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.65 | 0.62 | 0.69 | 0.75 | 0.73 |
| Debt-to-capital ratio | 0.82 | 0.77 | 0.80 | 0.88 | 0.84 |
| Debt-to-equity ratio | 4.63 | 3.28 | 3.90 | 7.55 | 5.10 |
| Financial leverage ratio | 7.17 | 5.29 | 5.68 | 10.05 | 7.00 |
Las Vegas Sands Corp's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The trend in the debt-to-assets ratio shows a slight increase from 0.73 in 2020 to 0.75 in 2021, before decreasing to 0.62 in 2023, and then rising again to 0.65 in 2024. This indicates that the company's level of debt relative to its total assets has fluctuated over the years, but generally remained at manageable levels.
Looking at the debt-to-capital ratio, we observe a similar pattern with a rise from 0.84 in 2020 to 0.88 in 2021, followed by a decline to 0.77 in 2023, and a subsequent increase to 0.82 in 2024. This ratio reflects the proportion of debt financing in relation to the total capital structure, signaling Las Vegas Sands Corp's reliance on debt for funding its operations.
The debt-to-equity ratio, which measures the extent of leverage in the company's capital structure, started at 5.10 in 2020, experienced a significant increase to 7.55 in 2021, and then decreased to 3.28 in 2023, before rising to 4.63 in 2024. The fluctuating trend indicates changes in the company's debt and equity mix over the years, highlighting varying levels of financial risk.
Lastly, the financial leverage ratio, showing the proportion of debt in the company's capital structure relative to equity, started at 7.00 in 2020, peaked at 10.05 in 2021, and then decreased to 5.29 in 2023, before increasing to 7.17 in 2024. This ratio demonstrates Las Vegas Sands Corp's degree of financial leverage and its ability to generate returns for shareholders in relation to debt financing.
Overall, the analysis of Las Vegas Sands Corp's solvency ratios reveals fluctuations in its debt levels, capital structure, leverage, and financial risk over the years, emphasizing the importance of maintaining a balanced approach to long-term financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.28 | 2.91 | 3.83 | -0.56 | -2.18 |
To analyze Las Vegas Sands Corp's interest coverage, we look at the ratio of earnings before interest and taxes (EBIT) to interest expense. A higher interest coverage ratio indicates the company is more capable of covering its interest obligations.
- As of December 31, 2020, the interest coverage ratio was -2.18, indicating that the company's EBIT was insufficient to cover its interest expenses, raising concerns about its financial health.
- By December 31, 2021, the interest coverage ratio deteriorated further to -0.56, worsening the company's ability to meet its interest payments and suggesting potential financial distress.
- However, there was a significant improvement by December 31, 2022, with the interest coverage ratio reaching 3.83, which signifies that the company's EBIT was more than sufficient to cover its interest costs, reflecting better financial stability.
- The positive trend continued into December 31, 2023, with an interest coverage ratio of 2.91, indicating further improvement in the company's ability to meet its interest obligations.
- Lastly, by December 31, 2024, the interest coverage ratio slightly increased to 3.28, maintaining a relatively healthy financial position.
Overall, Las Vegas Sands Corp's interest coverage ratio has shown improvement over the years, with the company gradually strengthening its ability to cover its interest expenses, which is a positive sign for its financial sustainability.