Caesars Entertainment Corporation (CZR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.33% | 59.71% | 48.65% | 45.10% | 14.79% |
| Operating profit margin | 20.54% | 27.46% | 20.47% | 20.55% | -17.06% |
| Pretax margin | -1.70% | -1.13% | -11.06% | -18.33% | -72.38% |
| Net profit margin | -2.48% | 8.73% | -10.58% | -14.34% | -78.26% |
Based on the data provided for Caesars Entertainment Corporation, the company's profitability ratios have shown significant improvement over the past few years.
1. Gross Profit Margin:
- Caesars' gross profit margin has displayed a positive trend, increasing from 14.79% in 2020 to 66.33% in 2024. This indicates that the company has been able to improve its efficiency in generating profits from its core operations.
2. Operating Profit Margin:
- The operating profit margin saw fluctuations but generally improved, moving from a negative percentage of -17.06% in 2020 to a positive percentage of 20.54% in 2024. This shows that Caesars has been able to control its operating expenses and achieve higher profitability from its operations.
3. Pretax Margin:
- Caesars' pretax margin also displayed improvements, progressing from a significant negative percentage of -72.38% in 2020 to a much lower negative percentage of -1.70% in 2024. This indicates better management of expenses and income before taxes.
4. Net Profit Margin:
- The net profit margin experienced fluctuations but showed an overall positive trajectory, increasing from -78.26% in 2020 to -2.48% in 2024. Although still negative in some years, the narrowing of this margin suggests that Caesars has been able to enhance its profitability after accounting for all expenses and taxes.
Overall, the trend in Caesars Entertainment Corporation's profitability ratios demonstrates a positive transformation in the company's ability to generate profits and manage its costs effectively over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.07% | 7.41% | 5.19% | 3.84% | -1.05% |
| Return on assets (ROA) | -0.85% | 2.36% | -2.68% | -2.68% | -4.83% |
| Return on total capital | 13.88% | 13.66% | 8.33% | 5.59% | -2.16% |
| Return on equity (ROE) | -6.69% | 17.27% | -24.21% | -22.75% | -35.03% |
1. Operating Return on Assets (Operating ROA):
Caesars Entertainment Corporation's Operating ROA has shown a positive trend from 2020 to 2024, indicating improving operational efficiency and profitability. The Operating ROA increased from -1.05% in 2020 to 7.07% in 2024. This suggests that the company has been able to generate more operating income relative to its assets over the years.
2. Return on Assets (ROA):
The Return on Assets (ROA) of Caesars Entertainment Corporation has fluctuated over the years, with both negative and positive values. The ROA was negative in 2020 and 2021, improved to 2.36% in 2023, but turned negative again in 2024 at -0.85%. This indicates that the company's overall profitability in relation to its total assets has been inconsistent.
3. Return on Total Capital:
The Return on Total Capital for Caesars Entertainment Corporation has shown a steady increase from 2020 to 2024, reflecting the company's ability to generate returns for both equity and debt holders. The return on total capital rose from -2.16% in 2020 to 13.88% in 2024, indicating efficient utilization of both equity and debt capital to generate profits.
4. Return on Equity (ROE):
Caesars Entertainment Corporation's Return on Equity (ROE) has been volatile, with negative values in 2020, 2021, and 2022, a significant improvement to 17.27% in 2023, and a decline to -6.69% in 2024. The fluctuating ROE suggests variability in the company's ability to generate returns for its equity shareholders over the years.
Overall, while the Operating ROA and Return on Total Capital of Caesars Entertainment Corporation have demonstrated improvement and consistency, the ROA and ROE show fluctuations and inconsistencies in the company's overall profitability performance. Further analysis is needed to understand the underlying factors driving these trends and to assess the company's long-term profitability prospects.