Wynn Resorts Limited (WYNN)

The solvency ratios of Wynn Resorts Ltd. indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.

1. Debt-to-assets ratio:
- The debt-to-assets ratio has shown a decreasing trend from 0.95 in 2021 to 0.84 in 2023, suggesting that the company has been able to reduce its reliance on debt to finance its assets over the period under review. However, the ratio is still relatively high, indicating that a significant portion of the company's assets is financed through debt.

2. Debt-to-capital ratio:
- The debt-to-capital ratio fluctuated slightly over the years, with a peak in 2022 at 1.07. This ratio measures the proportion of a company's capital that is debt-financed. The lower ratio in 2023 at 1.02 compared to 2022 suggests a slight improvement, but it indicates that a significant portion of the company's capital structure is still reliant on debt.

3. Debt-to-equity ratio:
- Information about the debt-to-equity ratio is missing for the years provided except for 2019, where it was notably high at 5.97. This ratio is a measure of a company's financial leverage and indicates how much of the company's operations are funded by debt relative to equity. The high ratio in 2019 suggests that the company had a higher level of debt relative to equity, which could pose higher financial risks.

4. Financial leverage ratio:
- The financial leverage ratio was not provided for the years under review except for 2019, where it was exceptionally high at 7.96. This ratio reflects the extent to which a company uses debt to finance its operations and indicates the level of financial risk. The high ratio in 2019 suggests that the company had a significant amount of debt compared to its equity, potentially leading to higher financial risks.

Overall, while there have been some fluctuations in the solvency ratios of Wynn Resorts Ltd. over the years, the company has shown some improvement in reducing its reliance on debt financing. However, the high debt levels indicated by these ratios emphasize the importance of monitoring the company's debt management practices to ensure long-term financial stability.

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Coverage ratios

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 EBIT to cover its interest expenses.

Looking at Wynn Resorts Ltd.'s interest coverage over the past five years, the company has had fluctuating performance in this area. In 2023, the interest coverage ratio improved to 1.62, showing that the company's EBIT was able to cover its interest expenses adequately. This represents a positive trend compared to the previous year, where the ratio was negative at -0.46.

In 2021 and 2020, the interest coverage ratios were also negative, indicating that the company's EBIT was insufficient to cover its interest payments. This suggests a concerning financial position during those years.

However, in 2019, Wynn Resorts Ltd. demonstrated a strong interest coverage ratio of 2.25, indicating a healthy ability to meet its interest obligations with earnings. This positive performance shows that the company was in a better financial position compared to the following years.

Overall, Wynn Resorts Ltd. has shown a mixed performance in terms of interest coverage over the past five years, with fluctuations in its ability to cover interest expenses. Continued monitoring of this ratio is essential to assess the company's financial health and its ability to manage its debt obligations effectively.