Caesars Entertainment Corporation (CZR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,247,000 | 2,292,000 | 1,363,000 | 1,018,000 | -412,000 |
| Long-term debt | US$ in thousands | 12,033,000 | 12,224,000 | 12,659,000 | 13,722,000 | 14,073,000 |
| Total stockholders’ equity | US$ in thousands | 4,157,000 | 4,552,000 | 3,713,000 | 4,480,000 | 5,016,000 |
| Return on total capital | 13.88% | 13.66% | 8.33% | 5.59% | -2.16% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,247,000K ÷ ($12,033,000K + $4,157,000K)
= 13.88%
Caesars Entertainment Corporation's return on total capital has shown a positive trend over the analyzed period. The company's return on total capital was -2.16% as of December 31, 2020, indicating a subpar performance. However, in the subsequent years, there was a notable improvement with the return on total capital reaching 5.59% as of December 31, 2021, 8.33% as of December 31, 2022, 13.66% as of December 31, 2023, and 13.88% as of December 31, 2024.
The increasing trend in return on total capital suggests that Caesars Entertainment Corporation has been effectively utilizing its total capital to generate profits and create value for its shareholders. The significant improvement in this ratio indicates that the company's operating efficiency and profitability have been on the rise, reflecting positively on its financial performance and overall business operations.
Peer comparison
Dec 31, 2024