Live Nation Entertainment Inc (LYV)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | 0.00 |
| Debt-to-equity ratio | — | — | — | — | 0.00 |
| Financial leverage ratio | — | — | — | — | 9.58 |
The solvency ratios for Live Nation Entertainment Inc show a mixed trend over the past five years. The debt-to-assets ratio has decreased from 0.46 in 2020 to 0.35 in 2023, indicating that the company is becoming more efficient in managing its debt relative to its total assets.
Similarly, the debt-to-capital ratio has also shown a declining trend from 1.11 in 2021 to 1.00 in 2023, suggesting that the company is relying less on debt financing compared to its total capital. However, the ratios still remain relatively high, indicating a significant proportion of debt in the company's capital structure.
The lack of data for the debt-to-equity ratio and financial leverage ratio for the earlier years limits a comprehensive analysis of the company's solvency. However, the high debt-to-equity ratio of 2.89 in 2019 and financial leverage ratio of 9.58 in 2019 indicate that Live Nation Entertainment Inc had a high level of financial leverage and reliance on debt that year.
Overall, the decreasing trends in debt-to-assets and debt-to-capital ratios suggest improving solvency and financial health for Live Nation Entertainment Inc, but it is essential for the company to continue monitoring and managing its debt levels to ensure long-term stability and sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.07 | 2.41 | -1.31 | -6.73 | 1.87 |
The interest coverage ratio of Live Nation Entertainment Inc has exhibited significant fluctuations over the past five years. In 2023, the interest coverage ratio improved to 9.31, indicating that the company's operating income was more than sufficient to cover its interest expenses. This positive trend signifies a strong ability to meet interest payments from operating earnings.
In the previous year, 2022, the interest coverage ratio was 3.54, showing a moderate capacity to cover interest obligations. However, in 2021 and 2020, the company experienced negative interest coverage ratios of -1.51 and -7.71, respectively. These negative ratios suggest that Live Nation Entertainment Inc may have faced challenges in generating enough operating income to cover its interest expenses during those periods.
The positive turnaround in 2023 following the declining trend in the preceding years indicates an improvement in the company's financial health and ability to service its debt obligations. Despite the fluctuations in the interest coverage ratio, it is essential for Live Nation Entertainment Inc to maintain a sustainable level of interest coverage to ensure financial stability and avoid potential liquidity issues.