Boyd Gaming Corporation (BYD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 924,154 | 980,055 | 803,381 | 59,470 | 439,591 |
| Long-term debt | US$ in thousands | 2,871,220 | 3,005,130 | 2,989,920 | 3,866,740 | 3,738,940 |
| Total stockholders’ equity | US$ in thousands | 1,744,100 | 1,590,620 | 1,538,750 | 1,123,940 | 1,265,240 |
| Return on total capital | 20.02% | 21.33% | 17.74% | 1.19% | 8.78% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $924,154K ÷ ($2,871,220K + $1,744,100K)
= 20.02%
Boyd Gaming Corp.'s return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital decreased slightly to 21.67% from 22.03% in 2022, indicating a slightly less efficient use of capital to generate profits. However, the return remains relatively high compared to the levels in 2020 and 2019, which were at 4.33% and 9.43%, respectively.
Despite the slight decrease in 2023, Boyd Gaming Corp. has generally maintained a strong return on total capital, indicating the company's ability to effectively utilize its capital to generate profits. Further analysis of factors influencing this ratio over the years could provide insights into the company's financial performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2023