Caesars Entertainment
Caesars EntertainmentFinancial analysis
IntroductionWho is Caesars Entertainment?What is their current
financial status?How is their solvency and profitability?Why?Is
there a solution?
Caesars EntertainmentA corporation in Las VegasLargest
Casino-Entertainment Provider since 1937Owns 65 casinos, currently
constructing three more2005 Harrah's Entertainment2008 Apollo
Global Management and Texas Pacific
No ProfitLoss doubles each year since 2011
LiquidityTotal Current Assets=3.7 billionTotal Current
liabilities=2.5 billionCaesars ratio average for the last two years
is 1.4. Short term debtReceivable turnover ratio of (.04)
ProfitabilityGross Profit Margin 48.8% better than industry
average of 39.2% Operating Profit Margin 2 year average is
(26)%Factiva lists Profit Margin last 5 years at (15.6)%ROE last
five years (138.7)%
SolvencyThe ability of a company to meet its long-term financial
obligations.Debt to Equity ratio = (3.10)Interest Cover Ratio = (2)
timesEarnings per share = (104.10)No dividends Cannot pay off
long-term debt
Why?Leveraged buyout in 2008 created debt Great Recession of
2008Bankruptcy or sell assets to pay for debt
