Wynn Resorts Limited (WYNN)
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 | 0.79 | 0.88 | 0.88 | 0.88 | 0.86 | 0.98 | 0.96 | 0.97 | 0.95 | 0.93 | 0.81 | 0.89 | 0.90 | 0.90 | 0.84 | 0.78 | 0.73 | 0.71 | 0.69 | 0.69 |
| Debt-to-capital ratio | 1.02 | 1.08 | 1.05 | 1.06 | 1.07 | 1.07 | 1.06 | 1.03 | 1.02 | 1.00 | 0.99 | 0.98 | 1.03 | 1.01 | 0.95 | 0.90 | 0.85 | 0.83 | 0.82 | 0.81 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 103.28 | 50.30 | — | — | 20.14 | 8.96 | 5.78 | 4.91 | 4.43 | 4.39 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 126.74 | 56.35 | — | — | 24.03 | 11.49 | 7.96 | 6.92 | 6.42 | 6.33 |
The solvency ratios of Wynn Resorts Ltd. indicate the company's ability to meet its long-term financial obligations and the extent to which its capital is funded through debt. The debt-to-assets ratio has shown a decreasing trend from 0.90 in Q4 2022 to 0.84 in Q4 2023, indicating a lower proportion of assets financed by debt over the period. This suggests improved financial stability and reduced financial risk.
Similarly, the debt-to-capital ratio has also displayed a decreasing trend from 1.07 in Q4 2022 to 1.02 in Q4 2023, suggesting a lower reliance on debt to fund the company's operations. This indicates a more balanced capital structure with a greater proportion of capital coming from equity sources.
The lack of data for the debt-to-equity ratio and financial leverage ratio limits a comprehensive analysis of Wynn Resorts Ltd.'s solvency position. However, based on the available data, the decreasing trend in debt ratios signifies a positive shift towards a more sustainable and less leveraged financial structure, potentially enhancing the company's long-term financial health and ability to withstand economic uncertainties.
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 | 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 | 1.72 | 1.77 | 2.17 | 2.32 |
Interest coverage ratio is an important financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio signifies that the company is more capable of meeting its interest obligations.
Analyzing the interest coverage ratios of Wynn Resorts Ltd. from Q1 2022 to Q4 2023, we observe significant fluctuations. In Q4 2023, the interest coverage ratio has improved to 1.62, indicating that the company's operating income was 1.62 times its interest expense during that period. This is a positive sign as it shows an enhanced ability to meet interest payments.
However, the interest coverage ratio was below 1 in the preceding quarters, suggesting that the company was not generating enough operating income to cover its interest expenses. The ratios in Q3 2023, Q2 2023, Q1 2023, Q4 2022, Q3 2022, Q2 2022, and Q1 2022 were 0.83, 0.46, -0.03, -0.46, -0.50, -0.53, and -0.49, respectively. A ratio below 1 indicates that the company is not generating sufficient earnings to cover its interest payments, which could raise concerns about its financial stability and ability to service its debt.
Overall, the recent improvement in the interest coverage ratio for Wynn Resorts Ltd. in Q4 2023 is a positive development, but the company should strive to maintain a consistent and healthy ratio above 1 to ensure financial stability and meet its debt obligations effectively.