Wynn Resorts Limited (WYNN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 984,669 | 236,361 | -149,750 | -946,100 | 713,855 |
| Interest expense | US$ in thousands | 751,509 | 650,885 | 605,562 | 556,474 | 414,030 |
| Interest coverage | 1.31 | 0.36 | -0.25 | -1.70 | 1.72 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $984,669K ÷ $751,509K
= 1.31
Wynn Resorts Ltd.'s interest coverage ratio has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio improved to 1.62, indicating that the company's operating profit was sufficient to cover its interest expenses. This is a positive sign of improved financial health compared to the previous year.
However, in 2022 and 2021, the company had negative interest coverage ratios of -0.46 and -0.66, respectively, indicating that the operating profit was insufficient to cover the interest expenses. This could point to financial distress and the inability to meet debt obligations solely from operating income during those years.
In 2020, the interest coverage ratio was significantly lower at -2.28, signaling a further deterioration in the ability to cover interest payments from operating earnings. This could be a concerning trend for creditors and investors.
On a more positive note, in 2019, the interest coverage ratio was healthy at 2.25, suggesting that the company had a comfortable buffer to cover interest expenses with operating profits.
Overall, Wynn Resorts Ltd. has experienced fluctuations in its interest coverage ratio over the past five years, with 2023 showing signs of improvement, while the preceding years indicate periods of financial strain and challenge in meeting interest obligations.
Peer comparison
Dec 31, 2023