Caesars Entertainment Corporation (CZR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,218,000 | 9,002,000 | 8,497,000 | 7,105,000 | 2,245,000 |
| Property, plant and equipment | US$ in thousands | 14,752,000 | 14,687,000 | 14,525,000 | 14,601,000 | 130,000 |
| Fixed asset turnover | 0.76 | 0.61 | 0.58 | 0.49 | 17.27 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,218,000K ÷ $14,752,000K
= 0.76
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. In the case of Caesars Entertainment Corporation, the fixed asset turnover has shown a significant decline over the years.
As of December 31, 2020, the fixed asset turnover ratio was exceptionally high at 17.27, indicating that the company was generating $17.27 in sales for every dollar invested in fixed assets. However, this figure plummeted to 0.49 by December 31, 2021, signifying a substantial decrease in asset utilization efficiency.
Subsequently, there was a slight improvement in the ratio in the following years, reaching 0.58 by December 31, 2022, 0.61 by December 31, 2023, and 0.76 by December 31, 2024. Despite the uptick in recent years, the fixed asset turnover ratio remains relatively low compared to historical levels, suggesting that Caesars Entertainment Corporation is not efficiently leveraging its fixed assets to drive sales.
It is essential for the company to closely monitor and potentially optimize its asset utilization strategies to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024