Caesars Entertainment Corporation (CZR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,317,000 | 2,366,000 | 2,337,000 | 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 |
| Long-term debt | US$ in thousands | 12,033,000 | 12,434,000 | 12,171,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,157,000 | 4,178,000 | 4,404,000 | 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 |
| Return on total capital | 14.31% | 14.24% | 14.10% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,317,000K ÷ ($12,033,000K + $4,157,000K)
= 14.31%
Caesars Entertainment Corporation's return on total capital has shown fluctuations over the past few years. From negative figures in mid-2020 to positive territory in the following quarters, the company has gradually improved its performance.
During the first half of 2022, the return on total capital remained relatively stable in the range of 3-5%. As of December 31, 2022, there was a notable improvement, reaching 8.33%, indicating a stronger utilization of capital to generate returns.
The trend continued positively into 2023, with the return on total capital steadily climbing and reaching 14.10% by March 31, 2024. This signifies a significant enhancement in the company's ability to generate profits from the capital employed.
Overall, the upward trajectory in Caesars Entertainment Corporation's return on total capital reflects improved efficiency in using both debt and equity capital to generate earnings and create value for its stakeholders.
Peer comparison
Dec 31, 2024