Live Nation Entertainment Inc (LYV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 86.32 | — | — | — | — | — | — | — | — | — | — | — | — | 33.99 | 13.80 | 9.58 | 7.74 | 8.97 | 9.88 |
Live Nation Entertainment Inc's solvency ratios reflect the company's ability to meet its financial obligations over the long term. The debt-to-assets ratio has shown a consistent trend of improvement, decreasing from 0.36 in Q4 2022 to 0.33 in Q2 2023, indicating a lower reliance on debt to finance its assets.
On the other hand, the debt-to-capital and debt-to-equity ratios highlight the company's capital structure. The debt-to-capital ratio has fluctuated, peaking at 1.10 in Q1 2022. This ratio signifies the proportion of a company's capital that is financed by debt, with values above 1 indicating a higher reliance on debt financing.
The missing value for the debt-to-equity ratio in Q3 2023 suggests incomplete data. However, the presence of a high ratio of 29.75 in Q3 2023 indicates a significant level of debt in relation to equity, which may potentially raise concerns about the company's financial risk and leverage.
Lastly, the financial leverage ratio, although missing in the provided data for Q4 2023 and previous quarters, is essential for assessing the company's overall financial risk. This ratio evaluates the company's ability to cover its interest payments and debt obligations. The high financial leverage ratio in Q3 2023 of 86.32 emphasizes the company's substantial reliance on borrowed funds, indicating higher financial risk.
In conclusion, Live Nation Entertainment Inc's solvency ratios display a mixed performance, with improving debt-to-assets ratio but concerning levels of debt-to-equity and financial leverage ratios. Monitoring these metrics will be crucial to evaluating the company's long-term financial health and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.07 | 3.13 | 2.80 | 2.50 | 2.41 | 2.34 | 1.08 | -0.40 | -1.31 | -2.15 | -4.42 | -6.36 | -6.73 | -6.05 | -3.04 | 0.98 | 1.87 | 2.00 | 1.89 | 1.55 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest expenses from its operating income. A higher interest coverage ratio is generally a positive sign, indicating a company's strong ability to meet its interest obligations.
In the case of Live Nation Entertainment Inc, the interest coverage ratio has shown a generally increasing trend over the past eight quarters. The ratio improved from 3.54 in Q4 2022 to 9.31 in Q4 2023, indicating a significant improvement in the company's ability to cover its interest expenses with operating income.
The interest coverage ratio was lowest in Q1 2022 at -0.31, suggesting that the company's operating income was not sufficient to cover its interest expenses during that period. However, Live Nation Entertainment Inc managed to turn this around and improve its interest coverage ratio consistently in subsequent quarters.
Overall, the increasing trend in Live Nation Entertainment Inc's interest coverage ratio from negative to above 9 in the latest quarter indicates improved financial health and a stronger ability to meet its interest payment obligations.