Las Vegas Sands Corp (LVS)
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 | 2,383,000 | 2,688,000 | -345,000 | -1,138,000 | 3,579,000 |
| Interest expense | US$ in thousands | 818,000 | 702,000 | 621,000 | 523,000 | 449,000 |
| Interest coverage | 2.91 | 3.83 | -0.56 | -2.18 | 7.97 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,383,000K ÷ $818,000K
= 2.91
Las Vegas Sands Corp's interest coverage ratio has fluctuated significantly over the past five years. In 2023, the interest coverage ratio improved to 4.42, indicating the company's ability to cover its interest expenses has strengthened compared to the prior year. This improvement is positive as it suggests that the company's earnings are more than sufficient to cover its interest obligations.
In 2022, the interest coverage ratio was negative at -1.34, indicating that the company's earnings were insufficient to cover its interest expenses. This negative ratio raises concerns about the company's financial health and its ability to meet its debt obligations.
A similar situation was observed in 2021 and 2020 when the interest coverage ratios were -1.07 and -3.12, respectively, indicating financial distress and a lack of earnings to cover interest expenses during those years.
In 2019, the interest coverage ratio was a healthy 7.88, indicating that the company's earnings were significantly greater than its interest obligations, reflecting a strong financial position.
Overall, the trend in Las Vegas Sands Corp's interest coverage ratio shows variability and vulnerability in its ability to cover interest expenses, with recent improvements suggesting a positive turnaround in the company's financial performance.
Peer comparison
Dec 31, 2023