Las Vegas Sands Corp. (NYSE:LVS)

Debt to Equity Ratio

The debt to equity ratio experienced a notable upward trend from 2.11 in 2018 to a peak of 7.41 in 2021, indicating a significant increase in leverage over this period. In 2022, the ratio decreased to 4.12, suggesting a partial deleveraging or increased equity base. When including operating lease liabilities, the pattern remains consistent, with marginally higher values.

Debt to Capital Ratio

This ratio rose steadily from 0.68 in 2018 to 0.88 in 2021, demonstrating growing reliance on debt financing relative to total capital. A slight reduction to 0.80 in 2022 indicates a modest decrease in the proportion of debt financing. The inclusion of operating lease liabilities yields a very similar trend.

Debt to Assets Ratio

The debt to assets ratio increased from 0.53 in 2018 to 0.74 in 2021, reflecting a higher proportion of assets financed by debt. In 2022, there was a slight decline to 0.72, implying some reduction in debt relative to assets or asset base growth. Including operating lease liabilities shows a slightly higher but parallel trend.

Financial Leverage

Financial leverage more than doubled from 3.97 in 2018 to 10.05 in 2021, indicating substantial amplification of equity risk due to increased borrowing. The figure declined significantly to 5.68 in 2022, signaling a strategic reduction in leverage risk.

Interest Coverage Ratio

Interest coverage started strong at 8.46 in 2018 but declined steadily, turning negative in 2020 (-3.07) and remaining negative in subsequent years (-1.37 in 2021 and -0.98 in 2022). This suggests deteriorating ability to cover interest expenses from earnings, indicating potential operational or financial stress.

Fixed Charge Coverage Ratio

The fixed charge coverage followed a similar trajectory as interest coverage, decreasing from 7.23 in 2018 to negative values by 2020 (-2.51), and staying negative in 2021 (-1.13) and 2022 (-0.78). This implies worsening capacity to meet fixed financial obligations, which could raise concerns about liquidity and solvency.

Total Debt

The total debt exhibited a consistent upward trend over the period from 2018 to 2022. Beginning at $11,985 million in 2018, it rose to $15,978 million by the end of 2022. This represents an increase of approximately 33.3%, with steady annual increments indicating an ongoing reliance on external financing or a funding strategy involving increased leverage.

Total Stockholders’ Equity

Stockholders’ equity showed a declining trend from 2018 through 2021, decreasing from $5,684 million to a low of $1,996 million in 2021. However, in 2022, there was a notable recovery as equity increased to $3,881 million. Despite this rebound, the equity level in 2022 remained below the 2018 figure, suggesting that the company faced equity erosion over several years but initiated corrective measures or experienced improved profitability towards the end of the period.

Debt to Equity Ratio

The debt to equity ratio increased sharply between 2018 and 2021, reflecting a rapid increase in leverage relative to equity. The ratio doubled from 2.11 in 2018 to 4.71 in 2020, then surged to 7.41 in 2021, indicating a significant rise in financial risk and debt load compared to the company’s equity base. In 2022, the ratio decreased to 4.12, aligning with the partial recovery in equity and suggesting a partial deleveraging or equity base strengthening, though the leverage remained elevated relative to the earlier years.

Overall Analysis

The data reveals a company increasing its debt continuously over five years while experiencing a decline and subsequent partial recovery in equity. The sharp rise in the debt to equity ratio until 2021 points to heightened financial leverage and potentially greater risk. The partial reversal of this trend in 2022 suggests efforts to improve the capital structure, possibly through equity enhancements or debt management initiatives. Monitoring these trends is crucial, as sustained high leverage could affect financial flexibility and increase solvency risk.

Total debt (including operating lease liability)

The total debt shows a consistent upward trend over the five-year period. Starting at $11,985 million in 2018, the debt increased annually, reaching $16,148 million by the end of 2022. This represents a cumulative increase of approximately 34.7%, indicating an expanding leverage position or increased borrowing activities during these years.

Total stockholders’ equity

Stockholders’ equity experienced a declining trend from 2018 through 2021, decreasing from $5,684 million in 2018 to a low of $1,996 million in 2021. This decline signals potential erosion of net asset value attributable to shareholders. However, in 2022, there was a noticeable recovery to $3,881 million, suggesting either improved earnings, capital injections, or revaluation gains during that year.

Debt to equity ratio (including operating lease liability)

The debt to equity ratio increased markedly from 2.11 in 2018 to 7.5 in 2021, reflecting a sharp deterioration in capital structure with debt far exceeding equity. In 2022, this ratio declined significantly to 4.16, indicating a partial improvement in balance between debt and equity, likely due to the increase in equity in that year combined with the continued rise in debt at a slower pace.

Total debt

The total debt exhibited a continuous upward trend over the five-year period. Starting at 11,985 million US dollars in 2018, the debt increased annually, culminating at 15,978 million US dollars by the end of 2022. This represents an overall increase of approximately 33%, indicating a growing reliance on borrowed funds.

Total capital

Total capital showed some fluctuations across the years. Initial values were relatively stable between 2018 and 2019, with a slight decrease observed in 2020 and 2021, reaching a low of 16,791 million US dollars in 2021. However, there was a notable recovery in 2022, with total capital increasing substantially to 19,859 million US dollars, surpassing earlier levels.

Debt to capital ratio

The debt to capital ratio presented an overall rising pattern from 0.68 in 2018 to a peak of 0.88 in 2021. This indicates a growing proportion of debt within the total capital structure over this period. In 2022, the ratio declined to 0.80, suggesting a relative improvement in capital structure by reducing leverage levels compared to the previous year, but still higher than the levels observed in 2018 and 2019.

Total Debt (including operating lease liability)

The total debt has shown a consistent upward trend over the five-year period. It increased from US$11,985 million in 2018 to US$16,148 million in 2022. The increments were steady each year, reflecting a growing leverage position.

Total Capital (including operating lease liability)

Total capital exhibited fluctuation throughout the period. Starting at US$17,669 million in 2018, it increased slightly to US$18,012 million in 2019, then declined over the subsequent two years reaching US$16,959 million in 2021. In 2022, total capital rose markedly to US$20,029 million, surpassing previous years.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio demonstrated an increasing trend from 0.68 in 2018 to a peak of 0.88 in 2021, indicating an increasing reliance on debt financing relative to total capital. In 2022, the ratio decreased to 0.81, suggesting an improvement in capital structure balance, possibly due to the notable increase in total capital that year.

Overall Analysis

The company's leverage increased steadily over the period, as shown by rising total debt and debt to capital ratio through 2021. The peak ratio in 2021 signals the highest relative debt burden during the timeframe. The rebound in total capital in 2022 reduced the debt to capital ratio, implying a strategic effort to strengthen the capital base. Despite the reduction, the 2022 ratio remains higher than in 2018 and 2019, reflecting a generally higher leverage level in recent years. The trends indicate cautious management of debt while maintaining growth in capital resources.

Total Debt

The total debt of the company shows a consistent upward trend over the five-year period. Beginning at $11,985 million in 2018, it increased annually, reaching $15,978 million by the end of 2022. This reflects a growing leverage position with an approximate 33% increase in total debt over the period analyzed.

Total Assets

Total assets exhibit a fluctuating pattern. After increasing slightly from $22,547 million in 2018 to $23,199 million in 2019, total assets declined sharply in the subsequent two years, dropping to $20,807 million in 2020 and further to $20,059 million in 2021. A partial recovery is observed in 2022 with assets rising to $22,039 million, yet the figure remains below the 2018 and 2019 levels.

Debt to Assets Ratio

The debt to assets ratio reveals an increasing leverage trend over the period. It starts at 0.53 in 2018 and marginally increases to 0.54 in 2019. A noticeable jump occurs in 2020 to 0.67, continuing upward to 0.74 in 2021 before a slight decline to 0.72 in 2022. This pattern indicates that debt levels have grown at a faster rate than total assets, raising the company's financial risk profile in these years.

Total debt (including operating lease liability)

The total debt exhibited an upward trend over the examined period. Starting at US$11,985 million at the end of 2018, the debt increased consistently each year, reaching US$16,148 million by the end of 2022. This represents a roughly 35% increase in total debt over five years, indicating a progressive increase in financial leverage.

Total assets

Total assets showed fluctuations during the period. Initially, assets increased slightly from US$22,547 million in 2018 to US$23,199 million in 2019. However, there was a marked decline in the following two years, dropping to US$20,807 million in 2020 and further to US$20,059 million in 2021. In 2022, total assets rebounded to US$22,039 million, nearly recovering to the 2018 level but still below the 2019 peak. This pattern suggests a period of asset contraction followed by partial recovery.

Debt to assets (including operating lease liability) ratio

The debt to assets ratio reflects the changes in both debt and assets and shows a clear increasing trend until 2021 before a slight improvement in 2022. The ratio increased from 0.53 in 2018 to a high of 0.75 in 2021, illustrating growing financial leverage and potentially increased risk exposure. In 2022, the ratio decreased slightly to 0.73, signaling a minor improvement in capital structure, likely influenced by the increase in assets and continued growth in debt.

The financial data reveals several important trends over the five-year period under review.

Total Assets

Total assets experienced some fluctuations, peaking at $23,199 million at the end of 2019 before declining to $20,059 million in 2021. There was a recovery to $22,039 million in 2022, though the asset base did not reach the 2019 peak. Overall, total assets show a downward trend between 2019 and 2021, followed by a moderate rebound in 2022.

Total Stockholders’ Equity

Equity exhibited a consistent decline from $5,684 million in 2018 to a low of $1,996 million in 2021, representing a significant erosion of shareholders’ value over these years. In 2022, equity improved to $3,881 million but remained below the initial value from 2018. The overall pattern signals financial challenges impacting retained earnings or increased distributions to shareholders.

Financial Leverage Ratio

The financial leverage ratio increased sharply from 3.97 in 2018 to a peak of 10.05 in 2021, indicative of a substantial rise in the proportion of debt relative to equity. This suggests a marked increase in reliance on debt financing during this period, likely influenced by the reduction in equity. In 2022, the leverage ratio decreased significantly to 5.68, pointing to a deleveraging trend or equity enhancement.

In summary, the period under review is characterized by declining equity and fluctuating asset levels, with a peak in financial leverage in 2021 highlighting increased financial risk. The partial recovery in both total assets and equity in 2022, combined with a reduction in leverage, may indicate efforts to strengthen the financial position after a period of elevated financial stress.

Earnings Before Interest and Tax (EBIT)

The EBIT displayed a significant decline over the analyzed period. It peaked in 2019 at 4,327 million US dollars, an increase from 3,772 million US dollars in 2018. Subsequently, it turned negative beginning in 2020, reaching -1,645 million US dollars, and although the deficit narrowed slightly in the following years, it remained negative at -853 million in 2021 and -685 million in 2022. This trend indicates a substantial deterioration in operating profitability starting in 2020.

Interest Expense, Net of Amounts Capitalized

Interest expense showed a steady upward trend throughout the period under review. It increased from 446 million US dollars in 2018 to 702 million US dollars in 2022. This consistent rise suggests growing debt servicing costs or increased borrowing levels.

Interest Coverage Ratio

The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, exhibited a marked decline. It decreased from 8.46 in 2018 to 7.8 in 2019, highlighting a reduction in the margin of safety to service interest payments. From 2020 onwards, the ratio turned negative, reflecting the transition into operating losses. The negative values of -3.07, -1.37, and -0.98 for 2020, 2021, and 2022 respectively, further underscore the company's impaired capacity to generate sufficient EBIT to meet interest obligations.

Earnings before fixed charges and tax

The earnings before fixed charges and tax increased from 3,860 million US dollars in 2018 to 4,412 million US dollars in 2019, indicating positive operational performance during this period. However, significant declines followed, with negative values starting in 2020 at -1,560 million, and continuing through 2021 and 2022 at -783 million and -609 million respectively. This downward trend highlights a substantial deterioration in earnings and suggests operational or market challenges beginning in 2020 that persisted through 2022.

Fixed charges

Fixed charges rose steadily over the period analyzed, from 534 million US dollars in 2018 to 778 million US dollars in 2022. This continuous increase in fixed charges implies higher obligatory payments, such as interest expenses or lease commitments, placing additional financial pressure on the company notwithstanding the earnings fluctuations observed.

Fixed charge coverage ratio

The fixed charge coverage ratio, an indicator of the company's ability to cover fixed charges with earnings, declined notably from a strong 7.23 in 2018 and 6.89 in 2019 to negative levels starting in 2020 (-2.51) and continuing to worsen in 2021 (-1.13) and 2022 (-0.78). The negative ratios correspond with the periods of negative earnings, signaling an inability to cover fixed charges with earnings during these years and suggesting significant financial distress or operational losses.