Las Vegas Sands Corp (LVS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.62 | 0.69 | 0.75 | 0.73 | 0.57 |
| Debt-to-capital ratio | 0.77 | 0.80 | 0.88 | 0.84 | 0.72 |
| Debt-to-equity ratio | 3.28 | 3.90 | 7.55 | 5.10 | 2.55 |
| Financial leverage ratio | 5.29 | 5.68 | 10.05 | 7.00 | 4.47 |
Las Vegas Sands Corp's solvency ratios provide insights into the company's financial leverage and ability to meet its debt obligations.
The debt-to-assets ratio has shown a slight decrease from 0.74 in 2021 to 0.64 in 2023, indicating that the company has been able to reduce its reliance on debt to finance its assets over the years.
The debt-to-capital ratio shows a similar trend, decreasing from 0.88 in 2021 to 0.77 in 2023. This signifies that the company has been able to finance a larger portion of its capital structure through equity rather than debt.
The debt-to-equity ratio has fluctuated significantly over the years, reaching a peak of 7.41 in 2021 and then declining to 3.41 in 2023. This suggests that the company has been reducing its debt levels relative to equity, which is a positive sign for its solvency.
The financial leverage ratio, which measures the company's total assets relative to equity, has also shown a declining trend from 10.05 in 2021 to 5.29 in 2023. This indicates that Las Vegas Sands Corp has been able to increase its equity base relative to its total assets, reducing the financial risk associated with high leverage.
Overall, the improving trend in these solvency ratios reflects positively on Las Vegas Sands Corp's ability to manage its debt levels and maintain a solid financial position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.91 | 3.83 | -0.56 | -2.18 | 7.97 |
Las Vegas Sands Corp's interest coverage ratio has exhibited significant fluctuations over the past five years. In 2023, the company's interest coverage ratio improved to 4.42, indicating the company's ability to cover its interest expenses by its earnings before interest and taxes has strengthened. This represents a positive trend compared to the previous year, where the interest coverage was negative, suggesting that the company was unable to cover its interest payments with its operating income.
The negative interest coverage ratios in 2022, 2021, and 2020 highlight a concerning trend, implying that Las Vegas Sands Corp faced challenges in meeting its interest obligations with its operating earnings during those years. However, the significant improvement in 2019, with an interest coverage ratio of 7.88, indicates that the company was performing well in terms of covering its interest expenses at that time.
Overall, the fluctuating trend in Las Vegas Sands Corp's interest coverage ratio underscores the company's varying ability to meet its interest payments with its operating profits over the years. It is crucial for the company to maintain a stable and healthy interest coverage ratio to ensure its financial stability and creditors' confidence in its ability to service its debt obligations.