Analysis of Debt
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- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
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Total Debt (Carrying Amount)
Las Vegas Sands Corp., balance sheet: debt
US$ in millions
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).
- Current Maturities of Long-term Debt
- The current maturities of long-term debt remained relatively stable from 2018 through 2021, fluctuating between 70 and 111 million US dollars. However, in 2022, there was a significant increase to 2,031 million US dollars, indicating a substantial rise in the amount of long-term debt due within the year.
- Long-term Debt, Excluding Current Maturities
- The long-term debt, excluding current maturities, showed a generally upward trend from 2018 to 2021, increasing from 11,874 million US dollars to 14,721 million US dollars. In 2022, this figure decreased slightly to 13,947 million US dollars, marking a reversal in the previous growth pattern.
- Total Long-term Debt, Including Current Maturities
- Total long-term debt followed a steady increase from 11,985 million US dollars in 2018 to 14,795 million US dollars in 2021. In 2022, total long-term debt rose further to 15,978 million US dollars, driven primarily by the sharp rise in current maturities, despite the slight decline in long-term debt excluding current maturities.
- Overall Insights
- The data reflects a stable debt structure up to 2021, with incremental increases in long-term debt. The sharp increase in current maturities in 2022 suggests a concentration of debt coming due in the short term, potentially impacting liquidity or necessitating refinancing. The slight decrease in long-term debt excluding current maturities in 2022 may indicate some repayments or debt restructuring. Overall, the company’s total long-term debt continued to grow, with the change in debt composition in 2022 being a notable development.
Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total long-term debt, including current maturities (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on Senior Notes and finance lease liabilities:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Las Vegas Sands Corp., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense, net of amounts capitalized | |||||||||||
| Capitalized Interest | |||||||||||
| Interest costs incurred |
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).
- Interest Expense, Net of Amounts Capitalized
- The interest expense, net of amounts capitalized, shows a consistent upward trend over the examined five-year period. Beginning at 446 million US dollars in 2018, this figure increased to 555 million in 2019 and slightly decreased to 536 million in 2020. Subsequently, it rose steadily to 621 million in 2021 and reached 702 million in 2022. This pattern indicates an overall increase in net interest expense despite a minor dip in 2020.
- Capitalized Interest
- Capitalized interest exhibited more fluctuation during the same period. Starting from a low level of 3 million US dollars in 2018, it increased to 9 million in 2019 and further to a peak of 21 million in 2020. However, it decreased to 15 million in 2021 and dropped significantly to 4 million in 2022. This trend suggests variability in the amount of interest capitalized, with 2020 representing a notable high point, followed by a sharp decline in subsequent years.
- Interest Costs Incurred
- The total interest costs incurred, which combine the net interest expense and capitalized interest, also indicate a generally increasing trend. Starting at 449 million US dollars in 2018, interest costs rose to 564 million in 2019 and then slightly decreased to 557 million in 2020. From there, the value increased to 636 million in 2021 and further to 706 million in 2022. The upward movement reflects the overall rise in borrowing costs or debt levels despite periodic fluctuations.
- Summary
- Overall, the interest-related financial metrics demonstrate a general increase in the financial burden associated with interest over the five-year period. Although there are some year-to-year variations, the increasing trend in net interest expense and total interest costs incurred is clear. Capitalized interest peaked in 2020 but then declined markedly, which may indicate changes in investment activity or capitalization policy. These observations suggest rising financing costs and potentially greater leverage or cost of debt going forward.
Adjusted Interest Coverage Ratio
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).
2022 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of amounts capitalized
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
- The ratio presented a decreasing trend over the analyzed period. It started at 8.46 in 2018, followed by a slight decline to 7.8 in 2019. A significant drop occurred in 2020, with the ratio turning negative to -3.07, indicating a considerable deterioration in the company's ability to cover interest expenses from operating earnings. The downward trend continued, with ratios of -1.37 in 2021 and -0.98 in 2022, suggesting persistent difficulties in meeting interest obligations through income generation.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- This ratio also demonstrated a downward trend analogous to the interest coverage ratio without capitalized interest. Initially at 8.4 in 2018, the ratio decreased to 7.67 in 2019, then sharply declined in 2020 to -2.95, indicating a loss in coverage capacity after accounting for capitalized interest costs. The trend of negative values persisted in the following years, with ratios of -1.34 in 2021 and -0.97 in 2022. This pattern corroborates the financial stress indicated in the unadjusted interest coverage ratio, with minimal improvement in subsequent years.
- Overall Analysis
- Both measurements of interest coverage illustrate a substantial weakening in the company's financial position with respect to its ability to cover interest expenses over the five-year span. The transition from healthy positive ratios in 2018 and 2019 to negative ratios from 2020 onwards highlights heightened financial risk and potential liquidity challenges. Despite slight improvements from 2020 to 2022, the ratios remain below zero, indicating ongoing operational or financial difficulties that affect the company's earnings relative to its interest obligations.