Caesars Entertainment Corporation (CZR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 786,000 | -899,000 | -1,019,000 | -1,757,000 | 81,000 |
| Total stockholders’ equity | US$ in thousands | 4,552,000 | 3,713,000 | 4,480,000 | 5,016,000 | 1,117,000 |
| ROE | 17.27% | -24.21% | -22.75% | -35.03% | 7.25% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $786,000K ÷ $4,552,000K
= 17.27%
Caesars Entertainment Inc's return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE improved to 17.27%, indicating that the company generated a profit of 17.27% for every dollar of shareholders' equity. This represents a positive turn compared to the negative ROE figures in the preceding years, where the company experienced challenges in generating profits relative to its equity.
The negative ROE figures in 2020, 2021, and 2022 (-35.05%, -22.75%, -24.21% respectively) suggest that the company was not effectively utilizing its equity to generate profits during those years. However, in 2019, there was a positive ROE of 7.25%, indicating a relatively successful year in terms of generating profits relative to equity.
Overall, the fluctuating ROE figures of Caesars Entertainment Inc signify inconsistencies in the company's ability to generate returns for its shareholders over the past five years. These fluctuations could be attributed to various factors such as changes in the company's financial performance, operational efficiency, and management strategies. Further analysis of the company's financial performance and sustainability initiatives would be necessary to understand the underlying reasons for these fluctuations in ROE.
Peer comparison
Dec 31, 2023