Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Las Vegas Sands Corp., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Between 2018 and 2022, the solvency profile experienced a period of significant volatility, characterized by a sharp escalation in leverage and a deterioration in debt service capacity beginning in 2020, followed by a partial deleveraging in 2022.
- Leverage and Capital Structure
- The debt-to-equity ratio exhibited a steep upward trajectory, rising from 2.11 in 2018 to a peak of 7.41 in 2021, before declining to 4.12 by the end of 2022. A similar pattern is observed in financial leverage, which surged from 3.97 in 2018 to a high of 10.05 in 2021, subsequently correcting to 5.68 in 2022.
- Debt-to-assets ratios showed a consistent increase over the analyzed period, moving from 0.53 in 2018 to 0.72 in 2022. This indicates that a larger proportion of the company's total assets were financed through debt over time.
- Debt-to-capital ratios remained relatively more stable than equity-based metrics but still followed a general upward trend, peaking at 0.88 in 2021 before receding slightly to 0.80 in 2022.
- Debt Serviceability
- A critical decline in solvency is evident in the coverage ratios. The interest coverage ratio dropped from 8.46 in 2018 to negative territory starting in 2020 (-3.07), remaining negative through 2022 (-0.98).
- The fixed charge coverage ratio mirrored this collapse, falling from 7.23 in 2018 to -0.78 in 2022. These negative values from 2020 through 2022 indicate that operating earnings were insufficient to cover interest and fixed obligations during this period.
- Impact of Operating Lease Liabilities
- The inclusion of operating lease liabilities resulted in a marginal increase across all solvency ratios. However, the variance between the standard ratios and those including lease liabilities remained minimal throughout the five-year period, suggesting that traditional debt is the primary driver of the observed solvency trends.
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Debt to Equity
Las Vegas Sands Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 2,031) | 74) | 76) | 70) | 111) | |
| Long-term debt, excluding current maturities | 13,947) | 14,721) | 13,931) | 12,422) | 11,874) | |
| Total debt | 15,978) | 14,795) | 14,007) | 12,492) | 11,985) | |
| Total Las Vegas Sands Corp. stockholders’ equity | 3,881) | 1,996) | 2,973) | 5,187) | 5,684) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 4.12 | 7.41 | 4.71 | 2.41 | 2.11 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Airbnb Inc. | 0.36 | 0.42 | — | — | — | |
| Booking Holdings Inc. | 4.51 | 1.77 | — | — | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | — | — | — | |
| DoorDash, Inc. | 0.00 | 0.00 | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Consumer Services | 24.19 | 7.90 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.51 | 1.50 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Total Las Vegas Sands Corp. stockholders’ equity
= 15,978 ÷ 3,881 = 4.12
2 Click competitor name to see calculations.
A consistent upward trend in total debt is observed from 2018 through 2022, with the balance increasing from US$ 11,985 million to US$ 15,978 million. This steady rise in liabilities coincided with a period of significant volatility in stockholders' equity, which experienced a sharp decline between 2019 and 2021 before rebounding in the final year of the period.
- Debt Accumulation
- Total debt grew incrementally every year throughout the analyzed period. The transition from US$ 11,985 million in 2018 to US$ 15,978 million in 2022 indicates a sustained increase in the company's total leverage.
- Equity Erosion and Recovery
- Stockholders' equity underwent a severe contraction, falling from US$ 5,684 million in 2018 to a low of US$ 1,996 million in 2021. However, a significant recovery was recorded in 2022, as equity rose to US$ 3,881 million.
- Solvency Ratio Dynamics
- The debt to equity ratio exhibited a sharp escalation from 2.11 in 2018 to a peak of 7.41 in 2021, signaling a substantial deterioration in the solvency profile and a heightened reliance on debt relative to equity. In 2022, the ratio decreased to 4.12, a shift driven by the recovery in stockholders' equity despite the continued increase in total debt obligations.
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Debt to Equity (including Operating Lease Liability)
Las Vegas Sands Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 2,031) | 74) | 76) | 70) | 111) | |
| Long-term debt, excluding current maturities | 13,947) | 14,721) | 13,931) | 12,422) | 11,874) | |
| Total debt | 15,978) | 14,795) | 14,007) | 12,492) | 11,985) | |
| Current operating lease liabilities (included in Other accrued liabilities) | 13) | 14) | 29) | 28) | —) | |
| Noncurrent operating lease liabilities (included in Other long-term liabilities) | 157) | 154) | 294) | 305) | —) | |
| Total debt (including operating lease liability) | 16,148) | 14,963) | 14,330) | 12,825) | 11,985) | |
| Total Las Vegas Sands Corp. stockholders’ equity | 3,881) | 1,996) | 2,973) | 5,187) | 5,684) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 4.16 | 7.50 | 4.82 | 2.47 | 2.11 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.42 | 0.51 | — | — | — | |
| Booking Holdings Inc. | 4.75 | 1.85 | — | — | — | |
| Chipotle Mexican Grill Inc. | 1.58 | 1.53 | — | — | — | |
| DoorDash, Inc. | 0.08 | 0.09 | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 33.45 | 11.35 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.90 | 1.87 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Las Vegas Sands Corp. stockholders’ equity
= 16,148 ÷ 3,881 = 4.16
2 Click competitor name to see calculations.
The solvency profile of the organization experienced significant volatility between 2018 and 2022, characterized by a consistent increase in total obligations and fluctuating equity levels. This resulted in a period of heightened financial leverage that peaked in 2021 before showing signs of stabilization in 2022.
- Total Debt Trends
- A consistent upward trajectory in total debt, including operating lease liabilities, was observed over the five-year period. Obligations increased steadily from US$ 11,985 million in 2018 to US$ 16,148 million by the end of 2022, indicating a sustained growth in total liabilities.
- Stockholders' Equity Fluctuations
- Equity levels exhibited a sharp contraction between 2019 and 2021, declining from US$ 5,187 million to a period low of US$ 1,996 million. A significant recovery was recorded in 2022, with equity rising to US$ 3,881 million, although this figure remained below the 2018 baseline of US$ 5,684 million.
- Debt to Equity Ratio Analysis
- The debt to equity ratio escalated rapidly from 2.11 in 2018 to a peak of 7.50 in 2021, signaling a substantial increase in financial leverage and a diminished equity cushion. In 2022, the ratio improved to 4.16, a change primarily driven by the recovery in stockholders' equity despite the ongoing increase in total debt.
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Debt to Capital
Las Vegas Sands Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 2,031) | 74) | 76) | 70) | 111) | |
| Long-term debt, excluding current maturities | 13,947) | 14,721) | 13,931) | 12,422) | 11,874) | |
| Total debt | 15,978) | 14,795) | 14,007) | 12,492) | 11,985) | |
| Total Las Vegas Sands Corp. stockholders’ equity | 3,881) | 1,996) | 2,973) | 5,187) | 5,684) | |
| Total capital | 19,859) | 16,791) | 16,980) | 17,679) | 17,669) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.80 | 0.88 | 0.82 | 0.71 | 0.68 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Airbnb Inc. | 0.26 | 0.29 | — | — | — | |
| Booking Holdings Inc. | 0.82 | 0.64 | — | — | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | — | — | — | |
| DoorDash, Inc. | 0.00 | 0.00 | — | — | — | |
| McDonald’s Corp. | 1.19 | 1.15 | — | — | — | |
| Starbucks Corp. | 2.41 | 1.57 | 1.96 | — | — | |
| Debt to Capital, Sector | ||||||
| Consumer Services | 0.96 | 0.89 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.60 | 0.60 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,978 ÷ 19,859 = 0.80
2 Click competitor name to see calculations.
The solvency profile from 2018 to 2022 is characterized by a consistent increase in total debt and a fluctuating capital base, leading to an overall rise in financial leverage that peaked in 2021 before a partial correction in 2022.
- Total Debt Trends
- A continuous upward trajectory in total debt is observed over the five-year period. Debt levels rose from 11,985 million US$ in 2018 to 15,978 million US$ by the end of 2022. This represents a steady increase in nominal liabilities, with the most significant absolute growth occurring between 2019 and 2020.
- Total Capital Dynamics
- Total capital exhibited a period of contraction between 2019 and 2021, declining from 17,679 million US$ to 16,791 million US$. However, a substantial recovery occurred in 2022, with total capital increasing to 19,859 million US$, marking the highest capital level within the analyzed timeframe.
- Debt to Capital Ratio Analysis
- The debt to capital ratio demonstrates a progressive increase from 0.68 in 2018 to a peak of 0.88 in 2021, indicating a growing reliance on debt financing relative to the total capital structure. In 2022, the ratio declined to 0.80. This decrease occurred despite the continued rise in total debt, driven primarily by the significant expansion of the total capital base during that fiscal year.
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Debt to Capital (including Operating Lease Liability)
Las Vegas Sands Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 2,031) | 74) | 76) | 70) | 111) | |
| Long-term debt, excluding current maturities | 13,947) | 14,721) | 13,931) | 12,422) | 11,874) | |
| Total debt | 15,978) | 14,795) | 14,007) | 12,492) | 11,985) | |
| Current operating lease liabilities (included in Other accrued liabilities) | 13) | 14) | 29) | 28) | —) | |
| Noncurrent operating lease liabilities (included in Other long-term liabilities) | 157) | 154) | 294) | 305) | —) | |
| Total debt (including operating lease liability) | 16,148) | 14,963) | 14,330) | 12,825) | 11,985) | |
| Total Las Vegas Sands Corp. stockholders’ equity | 3,881) | 1,996) | 2,973) | 5,187) | 5,684) | |
| Total capital (including operating lease liability) | 20,029) | 16,959) | 17,303) | 18,012) | 17,669) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.81 | 0.88 | 0.83 | 0.71 | 0.68 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.30 | 0.34 | — | — | — | |
| Booking Holdings Inc. | 0.83 | 0.65 | — | — | — | |
| Chipotle Mexican Grill Inc. | 0.61 | 0.61 | — | — | — | |
| DoorDash, Inc. | 0.07 | 0.08 | — | — | — | |
| McDonald’s Corp. | 1.14 | 1.10 | — | — | — | |
| Starbucks Corp. | 1.58 | 1.29 | 1.46 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 0.97 | 0.92 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.65 | 0.65 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 16,148 ÷ 20,029 = 0.81
2 Click competitor name to see calculations.
A persistent increase in financial leverage is observed from 2018 through 2022, characterized by a steady growth in total debt obligations relative to the total capital base.
- Total Debt Trends
- An uninterrupted upward trajectory is evident in total debt, including operating lease liabilities, which grew from US$ 11,985 million in 2018 to US$ 16,148 million by the end of 2022. This represents a consistent expansion of the company's total liabilities over the five-year period.
- Total Capital Dynamics
- Total capital exhibited volatility between 2018 and 2021, reaching US$ 18,012 million in 2019 before declining to a period low of US$ 16,959 million in 2021. A significant recovery occurred in 2022, with total capital increasing to US$ 20,029 million.
- Debt to Capital Ratio Analysis
- The debt to capital ratio rose sequentially from 0.68 in 2018 to a peak of 0.88 in 2021, indicating a heightened reliance on debt financing. This trend reversed in 2022, as the ratio declined to 0.81, a shift primarily attributable to the substantial increase in the total capital base during that year.
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Debt to Assets
Las Vegas Sands Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 2,031) | 74) | 76) | 70) | 111) | |
| Long-term debt, excluding current maturities | 13,947) | 14,721) | 13,931) | 12,422) | 11,874) | |
| Total debt | 15,978) | 14,795) | 14,007) | 12,492) | 11,985) | |
| Total assets | 22,039) | 20,059) | 20,807) | 23,199) | 22,547) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.72 | 0.74 | 0.67 | 0.54 | 0.53 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Airbnb Inc. | 0.12 | 0.14 | — | — | — | |
| Booking Holdings Inc. | 0.49 | 0.46 | — | — | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | — | — | — | |
| DoorDash, Inc. | 0.00 | 0.00 | — | — | — | |
| McDonald’s Corp. | 0.74 | 0.66 | — | — | — | |
| Starbucks Corp. | 0.53 | 0.47 | 0.54 | — | — | |
| Debt to Assets, Sector | ||||||
| Consumer Services | 0.49 | 0.46 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.35 | 0.36 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,978 ÷ 22,039 = 0.72
2 Click competitor name to see calculations.
The solvency profile between 2018 and 2022 is characterized by a consistent increase in total debt alongside fluctuating asset levels, resulting in an overall increase in the company's leverage ratio.
- Total Debt Evolution
- An uninterrupted upward trend in total debt is observed, with values rising from 11,985 million US$ in 2018 to 15,978 million US$ by the end of 2022. This steady growth indicates a continuous expansion of the company's long-term obligations over the five-year period.
- Total Asset Trends
- Total assets exhibited a non-linear trajectory. Following a slight increase from 22,547 million US$ in 2018 to a peak of 23,199 million US$ in 2019, a contraction occurred, with assets declining to 20,059 million US$ by 2021. A recovery phase began in 2022, with assets increasing to 22,039 million US$.
- Debt to Assets Ratio Interpretation
- The debt to assets ratio reflects a significant deterioration in solvency from 2018 to 2021, moving from 0.53 to a peak of 0.74. The most acute increase occurred between 2019 and 2021, where the ratio climbed from 0.54 to 0.74, driven by the convergence of rising debt levels and a shrinking asset base. In 2022, a marginal improvement to 0.72 is observed, attributed to the growth in total assets which partially offset the continued increase in total debt.
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Debt to Assets (including Operating Lease Liability)
Las Vegas Sands Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 2,031) | 74) | 76) | 70) | 111) | |
| Long-term debt, excluding current maturities | 13,947) | 14,721) | 13,931) | 12,422) | 11,874) | |
| Total debt | 15,978) | 14,795) | 14,007) | 12,492) | 11,985) | |
| Current operating lease liabilities (included in Other accrued liabilities) | 13) | 14) | 29) | 28) | —) | |
| Noncurrent operating lease liabilities (included in Other long-term liabilities) | 157) | 154) | 294) | 305) | —) | |
| Total debt (including operating lease liability) | 16,148) | 14,963) | 14,330) | 12,825) | 11,985) | |
| Total assets | 22,039) | 20,059) | 20,807) | 23,199) | 22,547) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.73 | 0.75 | 0.69 | 0.55 | 0.53 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.15 | 0.18 | — | — | — | |
| Booking Holdings Inc. | 0.52 | 0.48 | — | — | — | |
| Chipotle Mexican Grill Inc. | 0.54 | 0.53 | — | — | — | |
| DoorDash, Inc. | 0.05 | 0.06 | — | — | — | |
| McDonald’s Corp. | 0.97 | 0.92 | — | — | — | |
| Starbucks Corp. | 0.84 | 0.75 | 0.84 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 0.67 | 0.67 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.44 | 0.44 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 16,148 ÷ 22,039 = 0.73
2 Click competitor name to see calculations.
An analysis of the solvency profile from 2018 to 2022 reveals a progressive increase in financial leverage, characterized by a consistent rise in total debt and notable volatility in the total asset base.
- Total Debt Accumulation
- Total debt, including operating lease liabilities, exhibited a continuous upward trajectory over the five-year period. The obligation grew from 11,985 million US dollars in 2018 to 16,148 million US dollars by the end of 2022, indicating a persistent increase in total liabilities.
- Asset Base Volatility
- Total assets demonstrated a non-linear trend, peaking at 23,199 million US dollars in 2019 before experiencing a contraction. Assets reached a low of 20,059 million US dollars in 2021, followed by a recovery to 22,039 million US dollars in 2022.
- Debt to Assets Ratio Trends
- The debt to assets ratio increased steadily from 0.53 in 2018 to a peak of 0.75 in 2021. The most pronounced acceleration occurred between 2019 and 2020, where the ratio rose from 0.55 to 0.69, driven by the simultaneous increase in debt and a reduction in total assets. A marginal improvement was observed in 2022, with the ratio declining slightly to 0.73, coinciding with the rebound in asset values.
The overall trend indicates a deterioration in the solvency position through 2021, as a significantly larger proportion of the asset base became financed by debt. Although 2022 figures suggest a slight stabilization, the leverage remains substantially higher than the levels recorded at the beginning of the analyzed period.
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Financial Leverage
Las Vegas Sands Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 22,039) | 20,059) | 20,807) | 23,199) | 22,547) | |
| Total Las Vegas Sands Corp. stockholders’ equity | 3,881) | 1,996) | 2,973) | 5,187) | 5,684) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 5.68 | 10.05 | 7.00 | 4.47 | 3.97 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Airbnb Inc. | 2.88 | 2.87 | — | — | — | |
| Booking Holdings Inc. | 9.12 | 3.83 | — | — | — | |
| Chipotle Mexican Grill Inc. | 2.93 | 2.90 | — | — | — | |
| DoorDash, Inc. | 1.45 | 1.46 | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Consumer Services | 49.57 | 17.02 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 4.32 | 4.22 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Total Las Vegas Sands Corp. stockholders’ equity
= 22,039 ÷ 3,881 = 5.68
2 Click competitor name to see calculations.
A period of significant volatility in the company's solvency structure is evident between 2018 and 2022. The financial leverage ratio underwent a marked escalation, peaking in 2021 before experiencing a substantial correction in 2022, indicating a period of heightened financial risk followed by a recovery phase.
- Financial Leverage Ratio Trends
- The leverage ratio rose consistently from 3.97 in 2018 to a peak of 10.05 in 2021. This trajectory represents a significant increase in the proportion of assets financed through liabilities relative to equity. The sharp peak in 2021 suggests a period of maximum financial vulnerability, although the ratio decreased considerably to 5.68 by the end of 2022.
- Equity Dynamics
- The primary driver of the escalating leverage was a sustained contraction in stockholders' equity. Equity levels fell from 5,684 million US$ in 2018 to a low of 1,996 million US$ in 2021. This erosion of the equity base intensified the leverage ratio. A notable reversal occurred in 2022, where equity nearly doubled to 3,881 million US$, contributing directly to the reduction of the leverage ratio.
- Asset Base Analysis
- Total assets exhibited less volatility than equity but still followed a downward trend during the period of peak leverage. Assets decreased from 23,199 million US$ in 2019 to 20,059 million US$ in 2021. The increase to 22,039 million US$ in 2022, coupled with the recovery in equity, points toward a broader stabilization of the balance sheet.
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Interest Coverage
Las Vegas Sands Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Las Vegas Sands Corp. | 1,832) | (961) | (1,685) | 2,698) | 2,413) | |
| Add: Net income attributable to noncontrolling interest | (475) | (315) | (458) | 606) | 538) | |
| Less: Income from discontinued operations, net of tax | 2,898) | 193) | —) | —) | —) | |
| Add: Income tax expense | 154) | (5) | (38) | 468) | 375) | |
| Add: Interest expense, net of amounts capitalized | 702) | 621) | 536) | 555) | 446) | |
| Earnings before interest and tax (EBIT) | (685) | (853) | (1,645) | 4,327) | 3,772) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -0.98 | -1.37 | -3.07 | 7.80 | 8.46 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Airbnb Inc. | 83.88 | 0.31 | — | — | — | |
| Booking Holdings Inc. | 11.03 | 5.39 | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| DoorDash, Inc. | -698.50 | -32.07 | — | — | — | |
| McDonald’s Corp. | 7.48 | 8.70 | — | — | — | |
| Starbucks Corp. | 9.76 | 12.40 | 3.66 | — | — | |
| Interest Coverage, Sector | ||||||
| Consumer Services | 9.43 | 7.55 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 9.30 | 13.23 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= -685 ÷ 702 = -0.98
2 Click competitor name to see calculations.
A significant deterioration in the ability to service debt through operating earnings is evident between 2018 and 2022. The period is characterized by a transition from a position of strong solvency to a multi-year phase of operating deficits, where earnings were insufficient to meet interest obligations.
- Earnings Before Interest and Tax (EBIT)
- Operating performance peaked in 2019 at US$ 4,327 million before experiencing a sharp reversal in 2020, with EBIT falling to negative US$ 1,645 million. Although a recovery trend is observable from 2021 through 2022, EBIT remained in negative territory, concluding the period at negative US$ 685 million.
- Interest Expense
- Net interest expenses demonstrated a consistent upward trajectory throughout the five-year analysis. Expenses rose from US$ 446 million in 2018 to US$ 702 million in 2022, indicating a steady increase in the cost of debt servicing regardless of the volatility in operating income.
- Interest Coverage Ratio
- The interest coverage ratio shifted from a robust 8.46 in 2018 to negative values starting in 2020. The ratio reached a critical low of -3.07 in 2020, before gradually trending upward toward zero, ending at -0.98 in 2022. This pattern confirms that operating profits were unable to cover interest expenses from 2020 to 2022, suggesting a reliance on cash reserves or additional financing to maintain debt obligations during this interval.
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Fixed Charge Coverage
Las Vegas Sands Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Las Vegas Sands Corp. | 1,832) | (961) | (1,685) | 2,698) | 2,413) | |
| Add: Net income attributable to noncontrolling interest | (475) | (315) | (458) | 606) | 538) | |
| Less: Income from discontinued operations, net of tax | 2,898) | 193) | —) | —) | —) | |
| Add: Income tax expense | 154) | (5) | (38) | 468) | 375) | |
| Add: Interest expense, net of amounts capitalized | 702) | 621) | 536) | 555) | 446) | |
| Earnings before interest and tax (EBIT) | (685) | (853) | (1,645) | 4,327) | 3,772) | |
| Add: Operating lease cost | 76) | 70) | 85) | 85) | 88) | |
| Earnings before fixed charges and tax | (609) | (783) | (1,560) | 4,412) | 3,860) | |
| Interest expense, net of amounts capitalized | 702) | 621) | 536) | 555) | 446) | |
| Operating lease cost | 76) | 70) | 85) | 85) | 88) | |
| Fixed charges | 778) | 691) | 621) | 640) | 534) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -0.78 | -1.13 | -2.51 | 6.89 | 7.23 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Airbnb Inc. | 20.69 | 0.42 | — | — | — | |
| Booking Holdings Inc. | 8.12 | 3.82 | — | — | — | |
| Chipotle Mexican Grill Inc. | 3.98 | 3.23 | — | — | — | |
| DoorDash, Inc. | -15.86 | -6.02 | — | — | — | |
| McDonald’s Corp. | 3.92 | 4.32 | — | — | — | |
| Starbucks Corp. | 3.08 | 3.61 | 1.58 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Consumer Services | 4.03 | 3.55 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 3.65 | 5.60 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -609 ÷ 778 = -0.78
2 Click competitor name to see calculations.
The solvency profile exhibited a significant deterioration between 2018 and 2022, characterized by a shift from robust coverage to persistent negative earnings relative to fixed obligations.
- Earnings before fixed charges and tax
- A period of growth was observed from 2018 to 2019, with earnings rising from 3,860 million to 4,412 million US$. However, a severe contraction occurred in 2020, resulting in a loss of 1,560 million US$. While subsequent years showed a trend of narrowing losses—improving to -783 million US$ in 2021 and -609 million US$ in 2022—earnings remained negative throughout the latter half of the analyzed period.
- Fixed charge obligations
- Fixed charges demonstrated a general upward trajectory, increasing from 534 million US$ in 2018 to 778 million US$ by 2022. This growth in obligations occurred despite the simultaneous decline in earnings, effectively increasing the financial pressure on the organization.
- Fixed charge coverage ratio
- The coverage ratio reflects a sharp decline from a strong position of 7.23 in 2018 and 6.89 in 2019 to negative values starting in 2020. The ratio reached a minimum of -2.51 in 2020 and gradually trended upward to -0.78 by 2022. The negative values indicate that earnings were insufficient to cover fixed charges during this three-year window, although the diminishing negative magnitude suggests a slow recovery toward a break-even point.
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