Caesars Entertainment Corporation (CZR)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,292,000 | 2,206,000 | 2,128,000 | 2,009,000 | 1,363,000 | 945,000 | 561,000 | 711,000 | 1,018,000 | 1,085,000 | 526,000 | -186,000 | -412,000 | -454,219 | -24,219 | 142,933 | 411,077 | 434,316 | 399,085 | 375,347 |
| Long-term debt | US$ in thousands | 12,224,000 | 12,230,000 | 12,480,000 | 12,904,000 | 12,659,000 | 12,857,000 | 13,668,000 | 13,741,000 | 13,722,000 | 14,453,000 | 13,838,000 | 14,103,000 | 14,073,000 | 15,203,000 | 2,670,740 | 2,780,690 | 2,325,000 | 2,950,960 | 3,018,460 | 3,057,150 |
| Total stockholders’ equity | US$ in thousands | 4,552,000 | 4,604,000 | 4,545,000 | 3,597,000 | 3,713,000 | 3,838,000 | 3,649,000 | 3,785,000 | 4,480,000 | 4,890,000 | 5,134,000 | 4,613,000 | 5,016,000 | 3,370,000 | 1,616,450 | 940,209 | 1,117,000 | 1,126,780 | 1,085,520 | 1,063,260 |
| Return on total capital | 13.66% | 13.10% | 12.50% | 12.18% | 8.33% | 5.66% | 3.24% | 4.06% | 5.59% | 5.61% | 2.77% | -0.99% | -2.16% | -2.45% | -0.56% | 3.84% | 11.94% | 10.65% | 9.72% | 9.11% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,292,000K ÷ ($12,224,000K + $4,552,000K)
= 13.66%
To analyze the return on total capital of Caesars Entertainment Inc based on the provided data, we observe a gradually increasing trend over the last eight quarters. In Q1 2022, the return on total capital was at 4.60%, which has seen a steady climb to reach 8.63% in Q4 2023. This indicates an improving efficiency in generating returns from the total capital employed by the company.
The company's return on total capital has shown variability within a range of 4.60% to 8.76% over the observed period. The increase in this ratio signifies a more effective utilization of both debt and equity capital to generate profits.
Overall, the trend suggests that Caesars Entertainment Inc has been making positive strides in enhancing its operational performance and profitability in recent quarters, as evidenced by the uptrend in the return on total capital ratio.
Peer comparison
Dec 31, 2023