2. Introduction
• Who is Caesars Entertainment?
• What is their current financial
status?
• How is their solvency and
profitability?
• Why?
• Is there a solution?
3. Caesars Entertainment
• A corporation in Las Vegas
• Largest Casino-Entertainment Provider since
1937
• Owns 65 casinos, currently constructing three
more
• 2005 Harrah's Entertainment
• 2008 Apollo Global Management and Texas
Pacific
4. No Profit
• Loss doubles each year since 2011
0
0.5
1
1.5
2
2.5
3
2011 2012 2013
Billions
Caesars Loss since 2011
5. Liquidity
• Total Current Assets=3.7 billion
• Total Current liabilities=2.5 billion
• Caesars ratio average for the last
two years is 1.4.
• Short term debt
• Receivable turnover ratio of (.04)
6. Profitability
• Gross 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)%
7. Solvency
• The ability of a company to meet its long-term
financial obligations.
• Debt to Equity ratio = (3.10)
• Interest Cover Ratio = (2) times
• Earnings per share = (104.10)
• No dividends
• Cannot pay off long-term debt
8. Why?
• Leveraged buyout in 2008 created debt
• Great Recession of 2008
• Bankruptcy or sell assets to pay for debt
