Caesars Entertainment Corporation (CZR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -278,000 | 786,000 | -899,000 | -1,019,000 | -1,757,000 |
| Total stockholders’ equity | US$ in thousands | 4,157,000 | 4,552,000 | 3,713,000 | 4,480,000 | 5,016,000 |
| ROE | -6.69% | 17.27% | -24.21% | -22.75% | -35.03% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-278,000K ÷ $4,157,000K
= -6.69%
Caesars Entertainment Corporation's return on equity (ROE) has shown fluctuations over the years based on the provided data. In December 31, 2020, the ROE was at a negative 35.03%, indicating that the company's net income was not sufficient to generate a positive return for shareholders' equity. This negative trend continued in December 31, 2021, with an ROE of -22.75%.
However, there was a positive turnaround in December 31, 2023, with the ROE reaching 17.27%, reflecting a growth in profitability and efficiency in utilizing shareholders' equity to generate profits. The improvement in ROE suggests that the company was able to generate higher returns for its shareholders during this period.
The positive momentum was not sustained, as in December 31, 2024, the ROE dropped back to -6.69%. This decline may indicate challenges or fluctuations in the company's financial performance, which impacted its ability to generate returns for shareholders.
Overall, Caesars Entertainment Corporation's ROE has been volatile, with a mix of negative and positive trends over the years. It is crucial for the company to focus on enhancing profitability and efficiency to consistently deliver value to its shareholders.
Peer comparison
Dec 31, 2024