Wynn Resorts Limited (WYNN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.81 | 0.79 | 0.86 | 0.95 | 0.90 |
| Debt-to-capital ratio | 1.02 | 1.02 | 1.07 | 1.02 | 1.03 |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
Wynn Resorts Limited's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio indicates the proportion of the company's assets financed by debt. Over the past five years, this ratio has fluctuated between 0.79 and 0.95, with a decreasing trend from 2021 to 2024, suggesting a lower reliance on debt to fund assets.
The debt-to-capital ratio measures the percentage of capital provided by debt. Wynn Resorts' ratio has remained relatively stable around 1.02 to 1.07, indicating that a significant portion of the company's capital structure is financed through debt.
The absence of data for the debt-to-equity and financial leverage ratios for the years 2020 to 2024 suggests that specific financial information necessary to calculate these ratios may not have been available. These ratios are key indicators of a company's financial leverage and risk exposure.
Overall, based on the available data, Wynn Resorts Limited's solvency ratios demonstrate a moderate level of debt utilization to finance its operations while maintaining a stable capital structure. However, a more comprehensive analysis incorporating additional financial metrics would provide a more complete understanding of the company's solvency position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 49.25 | 1.31 | 0.36 | -0.25 | -1.70 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses.
In the case of Wynn Resorts Limited:
- As of December 31, 2020, the interest coverage ratio was -1.70, indicating that the company's EBIT was insufficient to cover its interest expenses. This suggests potential financial distress as the company would need to either increase its earnings or decrease its interest payments.
- By December 31, 2021, the interest coverage ratio further deteriorated to -0.25, signaling a worsening financial situation and a higher risk of defaulting on interest payments.
- However, there was a significant improvement by December 31, 2022, with the interest coverage ratio increasing to 0.36. Although still below 1, this suggests a slight recovery, indicating that the company's ability to cover interest expenses improved.
- The trend continued to improve by December 31, 2023, with an interest coverage ratio of 1.31, suggesting that the company was generating sufficient earnings to cover its interest payments.
- Finally, by December 31, 2024, the interest coverage ratio surged to 49.25, indicating a substantial increase in the company's ability to meet its interest obligations, reflecting a strong financial position.
In summary, Wynn Resorts Limited experienced a challenging period in terms of interest coverage in 2020 and 2021, but demonstrated a notable recovery and improvement in subsequent years, ultimately reaching a very comfortable position by 2024, with a significantly high interest coverage ratio of 49.25.