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Las Vegasnds (BUE:LVS) Financial Strength

: 2 (As of Mar. 2024)
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Las Vegasnds has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Las Vegasnds's Interest Coverage for the quarter that ended in Mar. 2024 was 4.02. Las Vegasnds's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.18. As of today, Las Vegasnds's Altman Z-Score is 2.46.


Competitive Comparison

For the Resorts & Casinos subindustry, Las Vegasnds's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Las Vegasnds Financial Strength Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Las Vegasnds's Financial Strength distribution charts can be found below:

* The bar in red indicates where Las Vegasnds's Financial Strength falls into.



Las Vegasnds Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Las Vegasnds's Interest Expense for the months ended in Mar. 2024 was ARS-153,335 Mil. Its Operating Income for the months ended in Mar. 2024 was ARS615,868 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ARS10,037,545 Mil.

Las Vegasnds's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*615867.51/-153335.003
=4.02

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Las Vegasnds's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1721227.529 + 10037545.171) / 9971830.168
=1.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Las Vegasnds has a Z-score of 2.46, indicating it is in Grey Zones. This implies that Las Vegasnds is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.46 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Las Vegasnds  (BUE:LVS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Las Vegasnds has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Las Vegasnds Financial Strength Related Terms

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Las Vegasnds (BUE:LVS) Business Description

Address
5500 Haven Street, Las Vegas, NV, USA, 89119
Las Vegas Sands is the world's largest operator of fully integrated resorts, featuring casino, hotel, entertainment, food and beverage, retail, and convention center operations. The company owns the Venetian Macao, Sands Macao, Londoner Macao, Four Seasons Hotel Macao, and Parisian Macao, as well as the Marina Bay Sands resort in Singapore. Its Venetian and Palazzo Las Vegas assets in the U.S. were sold to Apollo and VICI for $6.25 billion in 2022. We expect Sands to open a fourth tower in Singapore in 2029. With the sale of its Vegas assets, the company generates all its EBITDA from Asia, with its casino operations generating the majority of sales.