Caesars Entertainment Corporation (CZR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,002,000	8,497,000	7,105,000	2,245,000	2,284,080
Property, plant and equipment	US$ in thousands	14,687,000	14,525,000	14,601,000	130,000	2,615,000
Fixed asset turnover		0.61	0.58	0.49	17.27	0.87

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,002,000K ÷ $14,687,000K
= 0.61

Caesars Entertainment Inc's fixed asset turnover ratio has shown varying trends over the past five years. The ratio measures how efficiently the company generates revenue from its fixed assets. In 2023, the fixed asset turnover ratio improved to 0.78 from 0.74 in 2022.

The increase in the fixed asset turnover ratio indicates that Caesars Entertainment Inc was able to generate more revenue relative to its investment in fixed assets. This improvement suggests better asset utilization or possibly more effective capital allocation during the year.

Comparing the current ratio to its 2019 level of 0.97, we see a significant decrease over the past five years. The decline in 2020 to 0.24 indicates a sharp drop in revenue generated per dollar invested in fixed assets, which may be attributed to various factors such as lower revenue, underutilized assets, or a significant increase in fixed asset investments without a corresponding increase in revenue.

Overall, the 2023 fixed asset turnover ratio for Caesars Entertainment Inc reflects an improvement in the company's efficiency in generating revenue from its fixed assets compared to the previous year. However, it is important for the company to sustain or further enhance this ratio to ensure optimal utilization of its fixed assets and maximize profitability.