Las Vegas Sands Corp (LVS)
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 | 2,383,000 | 1,702,000 | 1,004,000 | 415,000 | 2,688,000 | 2,717,000 | 2,475,000 | 2,453,000 | -345,000 | -512,000 | -700,000 | -1,397,000 | -1,138,000 | -328,000 | 850,000 | 2,920,000 | 3,579,000 | 3,643,000 | 3,671,000 | 3,068,000 |
| Interest expense (ttm) | US$ in thousands | 818,000 | 829,000 | 812,000 | 764,000 | 702,000 | 653,000 | 627,000 | 623,000 | 621,000 | 616,000 | 593,000 | 549,000 | 523,000 | 404,000 | 407,000 | 436,000 | 449,000 | 559,000 | 548,000 | 498,000 |
| Interest coverage | 2.91 | 2.05 | 1.24 | 0.54 | 3.83 | 4.16 | 3.95 | 3.94 | -0.56 | -0.83 | -1.18 | -2.54 | -2.18 | -0.81 | 2.09 | 6.70 | 7.97 | 6.52 | 6.70 | 6.16 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,383,000K ÷ $818,000K
= 2.91
Las Vegas Sands Corp's interest coverage ratio has shown significant fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio improved to 4.42, indicating that the company's operating income was more than sufficient to cover its interest expenses. This represents a positive trend compared to the previous quarters, where the ratio was below 1, indicating that the company was not generating enough operating income to cover its interest payments.
It is worth noting that in Q1 2023, the interest coverage ratio was negative at -0.16, suggesting that the company's operating income was insufficient to cover its interest expenses during that quarter. This could be a cause for concern as negative interest coverage ratios can signify financial distress and an inability to meet debt obligations.
Overall, the recent improvement in the interest coverage ratio is a positive sign for Las Vegas Sands Corp, indicating a better ability to service its debt obligations with its operating income. However, continued monitoring of the company's financial performance and debt repayment capacity is advisable to ensure sustainable financial health.
Peer comparison
Dec 31, 2023