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.