Wynn Resorts Limited (WYNN)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,160,972	1,208,780	1,124,955	1,130,213	984,669	787,081	741,712	467,477	236,361	-7,854	-46,398	-52,143	-149,750	-242,297	-433,163	-876,323	-946,100	-628,927	-292,409	316,699
Interest expense (ttm)	US$ in thousands	23,000	709,877	730,526	746,173	751,509	745,174	721,880	686,467	650,885	624,226	609,274	604,868	605,562	602,888	597,705	580,499	556,474	520,236	489,746	449,677
Interest coverage		50.48	1.70	1.54	1.51	1.31	1.06	1.03	0.68	0.36	-0.01	-0.08	-0.09	-0.25	-0.40	-0.72	-1.51	-1.70	-1.21	-0.60	0.70

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,160,972K ÷ $23,000K
= 50.48

The interest coverage ratio of Wynn Resorts Limited has shown a volatile trend over the analyzed period, as evidenced by the data provided. During March 2020, the interest coverage ratio was at a concerning level of 0.70, indicating that the company's operating income was barely sufficient to cover its interest expenses.

Subsequently, the interest coverage ratio deteriorated further, reaching negative values in June 2020, and staying consistently below 0 for the following quarters until December 2021. This persistent low or negative interest coverage signified significant financial risk for the company, as it implied a high likelihood of default on its interest payments.

However, starting from March 2022, there was a notable improvement in the interest coverage ratio, gradually increasing quarter by quarter. By June 2024, the interest coverage ratio had reached a much healthier level of 1.54, indicating that the company's operating income was now able to cover its interest expenses approximately 1.54 times.

The substantial spike in the interest coverage ratio to 50.48 by December 2024 may suggest either a significant increase in operating income or a decrease in interest expenses, leading to a remarkably strong financial position regarding the ability to service its interest payments.

Overall, the trend in Wynn Resorts Limited's interest coverage ratio demonstrates a significant turnaround in the company's financial health, transitioning from a risky position to a more stable and robust stance by the end of the analyzed period.