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Caesars Entertainment Interest Coverage

: 1.15 (As of Jun. 2021)
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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 Jun. 2021 was $662 Mil. Caesars Entertainment's Interest Expense for the three months ended in Jun. 2021 was $-576 Mil. Caesars Entertainment's interest coverage for the quarter that ended in Jun. 2021 was 1.15. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Caesars Entertainment Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

NAS:CZR' s Interest Coverage Range Over the Past 10 Years
Min: 0.04   Med: 1.56   Max: 2.07
Current: 0.43

0.04
2.07

NAS:CZR's Interest Coverage is ranked lower than
99.99% of the 101 Companies
in the Travel & Leisure industry.

( Industry Median: 5.11 vs. NAS:CZR: 0.43 )

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.

* Premium members only.

Caesars Entertainment Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.94 2.07 1.98 1.57 0.04

Caesars Entertainment Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 0.14 - 0.37 1.15

Competitive Comparison

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 Interest Coverage Distribution

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.


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. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Caesars Entertainment's Interest Expense was $-1,174 Mil. Its Operating Income was $46 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,813 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*46/-1174
=0.04

Caesars Entertainment's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Caesars Entertainment's Interest Expense was $-576 Mil. Its Operating Income was $662 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,212 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*662/-576
=1.15

* 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.

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


Caesars Entertainment  (NAS:CZR) 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 Business Description

Caesars Entertainment logo
Industry
Consumer Cyclical » Travel & Leisure NAICS : 721120 SIC : 7011
Traded in Other Exchanges
Address
100 West Liberty Street, 12th Floor, Reno, NV, USA, 89501
Caesars Entertainment Includes around 50 domestic gaming properties across Las Vegas (34% of 2021 estimated EBITDAR before corporate expense) and regional markets. Additionally, the company hosts international properties, which generate near break-even to slightly positive EBITDAR. 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 William Hill, a digital sports betting platform.
Executives
Mather Courtney director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Kornstein Don R director DON R KORNSTEIN 825 LAKESHORE BLVD INCLINE VILLAGE NV 89451
Quatmann Edmund L Jr officer: Chief Legal Officer 600 EMERSON ROAD SUITE 300 ST. LOUIS MO 63141
Reeg Thomas director, officer: Chief Executive Officer 21 WATERWAY AVE SUITE 150 THE WOODLANDS TX 77380
Carano Gary L. director, officer: Exec. Chairman of the Board 100 WEST LIBERTY STREET, 11TH FLOOR RENO NV 89501
Carano Anthony L. officer: President and COO 100 WEST LIBERTY STREET RENO NV 89501
Lepori Stephanie officer: CAO & Chief Admin. Officer 100 WEST LIBERTY STREET SUITE 1150 RENO NV 89501
Yunker Bret officer: Chief Financial Officer C/O ELDORADO RESORTS, INC. 100 WEST LIBERTY STREET, SUITE 1150 RENO NV 89501
Kozicz Gregory J. director 8800 PAGE AVENUE ST.LOUIS MO 63114
Wagner Roger P director STATE ROUTE 2 PO BOX 356 CHESTER WV 26034
Nelson James Larry director 2747 PARADISE ROAD PH2804 LAS VEGAS NV 89109
Jones Blackhurst Janis L director ONE CAESARS PALACE DRIVE LAS VEGAS NV 89109
Hawkins James B director C/O IRADIMED CORPORATION 1025 WILLA SPRINGS DR. WINTER SPRINGS FL 32708
Cozza Keith director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Recreational Enterprises, Inc. 10 percent owner P.O. BOX 2540 RENO NV 89505

Caesars Entertainment Headlines

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