Las Vegas Sands Corp (LVS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,381,000 | 2,383,000 | 2,688,000 | -345,000 | -1,138,000 |
| Interest expense | US$ in thousands | 727,000 | 818,000 | 702,000 | 621,000 | 523,000 |
| Interest coverage | 3.28 | 2.91 | 3.83 | -0.56 | -2.18 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,381,000K ÷ $727,000K
= 3.28
Las Vegas Sands Corp's interest coverage ratio has fluctuated over the past few years. In 2020 and 2021, the company's interest coverage ratio was below 1, indicating that its earnings were insufficient to cover its interest expenses. This suggests a higher risk of default on its debt obligations during those years.
However, there has been an improvement in the interest coverage ratio in the subsequent years, with values exceeding 1. In 2024, the interest coverage ratio reached 3.28, indicating that the company's earnings were more than three times its interest expenses. This improvement suggests a healthier financial position and lower risk of default on debt obligations compared to the earlier years.
Overall, it is essential for investors and creditors to monitor Las Vegas Sands Corp's interest coverage ratio closely to evaluate its ability to meet its interest payments and manage its debt obligations effectively in the future.
Peer comparison
Dec 31, 2024