Melco Resorts and Entertainment (Melco Resorts and Entertainment) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Melco Resorts and Entertainment's Operating Income for the three months ended in Dec. 2023 was $-91 Mil. Melco Resorts and Entertainment's Interest Expense for the three months ended in Dec. 2023 was $-129 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Melco Resorts and Entertainment Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Melco Resorts and Entertainment's Interest Coverage or its related term are showing as below:

MLCO' s Interest Coverage Range Over the Past 10 Years
Min: 0.22 Med: 2.32 Max: 5.35
Current: 0.22

MLCO's Interest Coverage is ranked worse than
97.85% of 606 companies
in the Travel & Leisure industry
Industry Median: 5.08 vs MLCO: 0.22

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Melco Resorts and Entertainment Interest Coverage Historical Data

The historical data trend for Melco Resorts and Entertainment's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Melco Resorts and Entertainment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.41

0.22

Melco Resorts and Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																-	0.12	0.66	0.80	-

Competitive Comparison

For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Melco Resorts and Entertainment Interest Coverage Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Melco Resorts and Entertainment's Interest Coverage falls into.

Melco Resorts and Entertainment Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Melco Resorts and Entertainment's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Melco Resorts and Entertainment's Interest Expense was $-492 Mil. Its Operating Income was $109 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,714 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	108.953	/	-492.391
	=	0.22

Melco Resorts and Entertainment's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Melco Resorts and Entertainment's Interest Expense was $-129 Mil. Its Operating Income was $-91 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,714 Mil.

Melco Resorts and Entertainment did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Melco Resorts and Entertainment (NAS:MLCO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Melco Resorts and Entertainment Interest Coverage Related Terms

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Melco Resorts and Entertainment (Melco Resorts and Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Melco Resorts and Entertainment Ltd (NAS:MLCO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

0A2P:UK M1LC34:Brazil

Address

60 Wyndham Street, 38th Floor, The Centrium, Central, Hong Kong, HKG

Website

https://www.melco-resorts.com

Melco Resorts & Entertainment is one of only six licensed casino operators in Macao. It operates Altira, a complex focused on VIP customers; City of Dreams, an integrated resort in Cotai serving both mass-market and premium patrons; and Mocha Clubs electronic gaming machines. The company also has a majority interest in Studio City, which opened in 2015. Outside Macao, Melco owns City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus. The business mix in terms of adjusted EBITDA was about 84% from Macao with the rest largely from the Philippines as of 2019.