How Does Caesars Entertainment’s Debt Look?


Caesars Entertainment, Inc. Is one of the gaming and hospitality company. It owns and operates gaming facilities. The NASDAQ: CZR at company principal operating activities are reported through geographic regions and reportable segments, including West, Midwest, South, East, and Central. The West segment is including Eldorado Resort Casino Reno, Silver Legacy Resort Casino, Circus Circus Reno, Tropicana Laughlin Hotel and Casino, and montbleu Casino Resort and Spa. The Midwest segment is including Isle Casino Waterloo and Isle Casino Bettendorf. The South segment is including Isle Casino Racing Pompano Park, Eldorado Resort Casino Shreveport, Isle of Capri Casino Lula, Isle of Capri Casino Hotel Lake Charles, Trop Casino Greenville, and Belle of Baton Rouge Casino and Hotel. The East segment is including  Presque Isle Downs and Casino, ldorado Gaming Scioto Downs, and Tropicana Casino and Resort. The Central segment is including Tropicana Evansville, Lumiere Place Casino, and Grand Victoria Casino.

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Caesars Entertainment’s Debt Look

Over the past three months, shares of Caesars Entertainment (NASDAQ: CZR) is moved higher by 50.57%. Before it is having a look at the importance of debt, let their look at how much debt Caesars Entertainment has.

  • Caesars Entertainment’s Debt
  • According to the Caesars Entertainment’s most recent balance sheet as reported on August 6, 2020, total debt is at $3.68 billion, with $3.65 billion in long-term debt and $36.61 million in current debt. Adjusting for $950.48 million in cash-equivalents, the company has a net debt of $2.73 billion.
  • This is understanding the degree of financial leverage a company that has, investors, look at the debt ratio.
  • This is considering Caesars Entertainment’s $6.15 billion in total assets, the debt-ratio is at 0.6.
  • Generally speaking, a debt-ratio more than one means that a large portion of the debt is funded by assets.
  • As the debt-ratio increases, so does the risk of defaulting on loans, if interest rates were to increase.
  • Different industries are having different thresholds of tolerance for debt-ratios. A debt ratio of 40% is higher for one industry and normal for another.
  • Why Debt Is Important?
  • Debt is one of the important factors in the capital structure of a company and it can be helping it attain growth.
  • Debt has a relatively lower financing cost than equity that is creating it an attractive option for executives.
  • However, due to interest-payment obligations, the cash-flow of a company can be impacted.
  • Equity owners can keep the excess profit, generated from the debt capital when companies use the debt capital for its business operations. You can check more stocks like NYSE: GSK at before investing.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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