Wynn Resorts Limited (WYNN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.81 | 0.75 | 0.73 | 0.74 | 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 |
| Debt-to-capital ratio | 1.02 | 1.03 | 1.01 | 1.01 | 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 103.28 | 50.30 | — | — | 20.14 | 8.96 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 126.74 | 56.35 | — | — | 24.03 | 11.49 |
The solvency ratios of Wynn Resorts Limited indicate the company's ability to meet its long-term financial obligations.
The Debt-to-Assets ratio has shown fluctuations over the years, ranging from 0.73 to 0.98. This ratio measures the extent to which the company's assets are financed by debt. The increase in this ratio over time suggests a higher reliance on debt to fund its operations and growth.
The Debt-to-Capital ratio also displays variability, with values between 0.90 and 1.08. This ratio indicates the proportion of the company's capital that is funded by debt. The increasing trend in this ratio implies a rising level of debt in the company's capital structure.
The Debt-to-Equity ratio, although not available for most periods, shows high values in the earlier years, indicating significant debt compared to equity financing. This ratio highlights the company's leverage and financial risk.
The Financial Leverage ratio, which is a measure of the company's total assets compared to its equity, demonstrates a similar pattern to the other solvency ratios, showing increases over time.
Overall, the solvency ratios of Wynn Resorts Limited suggest a trend towards higher levels of debt relative to assets, capital, and equity, indicating potential financial leverage and risk in the company's capital structure. Investors and stakeholders should closely monitor these ratios to assess the company's ability to manage its debt obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on its outstanding debt. A higher interest coverage ratio suggests that the company is more capable of covering its interest expenses with its operating income.
Analyzing the interest coverage data provided for Wynn Resorts Limited, we observe a trend of negative interest coverage ratios from March 2020 to December 2022, indicating that the company was not generating enough operating income to cover its interest expenses during this period. This raises concerns about the company's financial health and its ability to meet its debt obligations.
However, starting from March 2023, the interest coverage ratio begins to improve and turns positive, reaching 1.70 by September 2024. This positive trend indicates a positive shift in the company's ability to cover its interest expenses with its operating income, reflecting potential improvement in its financial position.
The significant increase in the interest coverage ratio to 50.48 as of December 31, 2024, may suggest a substantial improvement in Wynn Resorts' profitability and financial stability. It is essential for the company to maintain this positive trend to ensure sustainable financial performance and meet its debt obligations efficiently in the future.