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