Caesars Entertainment (STU:2ER) Interest Coverage : 0.83 (As of Mar. 2024)

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What is Caesars Entertainment Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Caesars Entertainment's Operating Income for the three months ended in Mar. 2024 was €452 Mil. Caesars Entertainment's Interest Expense for the three months ended in Mar. 2024 was €-545 Mil. Caesars Entertainment's interest coverage for the quarter that ended in Mar. 2024 was 0.83. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Caesars Entertainment Inc interest coverage is 1.03, which is low.

The historical rank and industry rank for Caesars Entertainment's Interest Coverage or its related term are showing as below:

STU:2ER' s Interest Coverage Range Over the Past 10 Years
Min: 0.08 Med: 1.12 Max: 2.07
Current: 1.03

STU:2ER's Interest Coverage is ranked worse than
87.19% of 601 companies
in the Travel & Leisure industry
Industry Median: 5.14 vs STU:2ER: 1.03

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Caesars Entertainment Interest Coverage Historical Data

The historical data trend for Caesars Entertainment's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Caesars Entertainment Interest Coverage Chart

Caesars Entertainment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.57

0.08

0.74

0.82

1.08

Caesars Entertainment Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															1.04	1.09	1.22	1.00	0.83

Competitive Comparison of Caesars Entertainment's Interest Coverage

For the Resorts & Casinos subindustry, Caesars Entertainment's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Caesars Entertainment's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Caesars Entertainment's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Caesars Entertainment's Interest Coverage falls into.

Caesars Entertainment Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Caesars Entertainment's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Caesars Entertainment's Interest Expense was €-2,159 Mil. Its Operating Income was €2,342 Mil. And its Long-Term Debt & Capital Lease Obligation was €22,909 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2342.018	/	-2158.618
	=	1.08

Caesars Entertainment's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Caesars Entertainment's Interest Expense was €-545 Mil. Its Operating Income was €452 Mil. And its Long-Term Debt & Capital Lease Obligation was €11,197 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	451.72	/	-544.64
	=	0.83

The higher the ratio, the stronger the company's Financial Strength is.

Caesars Entertainment (STU:2ER) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Caesars Entertainment Interest Coverage Related Terms

Thank you for viewing the detailed overview of Caesars Entertainment's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Caesars Entertainment (STU:2ER) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Caesars Entertainment Inc (STU:2ER) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CZR:USA

Address

100 West Liberty Street, 12th Floor, Reno, NV, USA, 89501

Website

https://www.caesars.com

Caesars Entertainment includes about 50 domestic gaming properties across Las Vegas (58% of 2022 EBITDAR before corporate and digital expenses) and regional (59%) markets. Additionally, the company hosts managed properties and digital assets, the later of which produced material EBITDA losses in 2022. Caesars' U.S. presence roughly doubled with the 2020 acquisition by Eldorado, which built its first casino in Reno, Nevada, in 1973 and expanded its presence through prior acquisitions to over 20 properties before merging with legacy Caesars. Caesars' brands include Caesars, Harrah's, Tropicana, Bally's, Isle, and Flamingo. Also, the company owns the U.S. portion of William Hill (it sold the international operation in 2022), a digital sports betting platform.

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