Caesars Entertainment Debt
| CZR Stock | USD 38.25 0.43 1.11% |
Caesars Entertainment has over 25.07 Billion in debt which may indicate that it relies heavily on debt financing. At this time, Caesars Entertainment's Short and Long Term Debt Total is relatively stable compared to the past year. As of 11/28/2024, Net Debt is likely to grow to about 25.3 B, while Long Term Debt Total is likely to drop slightly above 2.8 B. . Caesars Entertainment's financial risk is the risk to Caesars Entertainment stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Caesars Entertainment's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Caesars Entertainment's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Caesars Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Caesars Entertainment's stakeholders.
Caesars Entertainment Quarterly Net Debt |
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For most companies, including Caesars Entertainment, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Caesars Entertainment, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Caesars Entertainment's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.9671 | Book Value 19.708 | Operating Margin 0.2241 | Profit Margin (0.03) | Return On Assets 0.0448 |
Given that Caesars Entertainment's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Caesars Entertainment is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Caesars Entertainment to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Caesars Entertainment is said to be less leveraged. If creditors hold a majority of Caesars Entertainment's assets, the Company is said to be highly leveraged.
At this time, Caesars Entertainment's Total Current Liabilities is relatively stable compared to the past year. As of 11/28/2024, Liabilities And Stockholders Equity is likely to grow to about 35 B, while Non Current Liabilities Other is likely to drop slightly above 827.5 M. Caesars |
Caesars Entertainment Bond Ratings
Caesars Entertainment financial ratings play a critical role in determining how much Caesars Entertainment have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Caesars Entertainment's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (2.20) | Possible Manipulator | View |
Caesars Entertainment Debt to Cash Allocation
Many companies such as Caesars Entertainment, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Caesars Entertainment has 25.07 B in debt with debt to equity (D/E) ratio of 6.55, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Caesars Entertainment has a current ratio of 0.78, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Caesars to invest in growth at high rates of return. Caesars Entertainment Common Stock Shares Outstanding Over Time
Caesars Entertainment Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Caesars Entertainment uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Caesars Entertainment Debt Ratio | 43.0 |
Caesars Entertainment Corporate Bonds Issued
Caesars Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Caesars Entertainment Use of Financial Leverage
Caesars Entertainment's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Caesars Entertainment's current equity. If creditors own a majority of Caesars Entertainment's assets, the company is considered highly leveraged. Understanding the composition and structure of Caesars Entertainment's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 25.1 B | 26.3 B | |
| Net Debt | 24.1 B | 25.3 B | |
| Long Term Debt | 12.2 B | 12.7 B | |
| Short Term Debt | 88 M | 86.5 M | |
| Long Term Debt Total | 3 B | 2.8 B | |
| Short and Long Term Debt | 65 M | 61.8 M | |
| Net Debt To EBITDA | 6.77 | 6.43 | |
| Debt To Equity | 2.70 | 3.22 | |
| Interest Debt Per Share | 68.11 | 64.70 | |
| Debt To Assets | 0.37 | 0.43 | |
| Long Term Debt To Capitalization | 0.73 | 0.54 | |
| Total Debt To Capitalization | 0.73 | 0.54 | |
| Debt Equity Ratio | 2.70 | 3.22 | |
| Debt Ratio | 0.37 | 0.43 | |
| Cash Flow To Debt Ratio | 0.15 | 0.14 |
Pair Trading with Caesars Entertainment
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caesars Entertainment position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caesars Entertainment will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Caesars Entertainment could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caesars Entertainment when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caesars Entertainment - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caesars Entertainment to buy it.
The correlation of Caesars Entertainment is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caesars Entertainment moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caesars Entertainment moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caesars Entertainment can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Caesars Stock Analysis
When running Caesars Entertainment's price analysis, check to measure Caesars Entertainment's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caesars Entertainment is operating at the current time. Most of Caesars Entertainment's value examination focuses on studying past and present price action to predict the probability of Caesars Entertainment's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caesars Entertainment's price. Additionally, you may evaluate how the addition of Caesars Entertainment to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.