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Financial Evaluation Of Caesars Entertainment Corporation

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As we examined the financial evaluation of Caesars Entertainment Corporation, it will reveal the financial stability of its revenues, gross margin, and earnings per share. The largest gaming companies in the world under the leadership of CEO Mark Frissora and its 31,000 employees. It is ranked #7 in the Airlines, Hotel & Travel industry. Its ticker symbol was CZR, established in 1989. Now as we further examine the financial of Caesars, we will describe the profitability, liquidity, solvency, and the positive/negative trends over the last three (3) years. The profitability will show and yield profit or financial gain. Liquidity will describe and reveal the availability of liquid assets; how easy it is to convert assets to cash. …show more content…

Both CZR and the Industry operating profit margin is .12. The net profit margin of CZR is 130% as the Industry is 19% showing that CZR is reliable and consistent with their profit margins. So, this indicates that for every dollar generated by CZR their shareholder obtains $1.30 which is a benefit to them. Their return on assets for 2015 is 50% as to where the Industry is 1% showing that CZR can efficiently be generating earning as its using assets. Return of equity for CZR ratio is 6.13 as to where the Industry is .43; CZR attributes 5.7 more to shareholders than the Industry against the investment that shareholders had put into the firm. Both CZR and the Industry’s return on capital employed is 6%, which shows the efficiency of the company may generate profits from their used money. So, this indicates that for every dollar invested in the capital employed that both CZR and Industry made six cents of benefits. CZR’s financial strength, profitability, and competitive position will attract potential investors as it demonstrations Caesars Entertainment Corporations long-term survivability. Financial Liquidity Compared to Industry Average Caesars Entertainment Corporation is below the industry average regarding financial liquidity. The industry average current ratio is 1.28 with a quick ratio of 1.23, while Caesars has a .88 current ratio and a .87 quick ratio. While the average company of

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