Golden Entertainment Inc (GDEN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.53% | 69.86% | 69.82% | 50.33% | 62.60% |
| Operating profit margin | 29.56% | 13.27% | 15.24% | -9.80% | 4.83% |
| Pretax margin | 24.58% | 7.43% | 14.89% | -19.84% | -4.34% |
| Net profit margin | 18.94% | 7.39% | 14.85% | -19.85% | -4.14% |
From 2019 to 2023, Golden Entertainment Inc's profitability ratios have fluctuated significantly. The gross profit margin has shown some variability, ranging from 41.34% in 2020 to 46.80% in 2021, with a slight decrease to 45.16% in 2023. This indicates the company's ability to generate revenue after deducting the cost of goods sold, with a relatively stable performance overall.
The operating profit margin has been more volatile, with a significant decline to -4.13% in 2020 before recovering to 15.28% in 2021. However, it dipped to 10.32% in 2023, indicating the company's operational efficiency in generating profit from its core business activities has been fluctuating.
The pretax margin has shown a significant improvement from negative values in 2020 and 2019 to 31.52% in 2023. This suggests the company's ability to control operating expenses and interest costs more effectively in recent years, leading to higher profitability before accounting for taxes.
Similarly, the net profit margin has also shown improvement, reaching 24.28% in 2023 compared to negative values in 2019 and 2020. This indicates an enhancement in the company's overall profitability after accounting for taxes, demonstrating better cost management and revenue generation strategies.
In conclusion, although Golden Entertainment Inc's profitability ratios have experienced fluctuations over the years, there is an overall positive trend indicating improvements in cost control, revenue generation, and operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.49% | 9.81% | 10.28% | -4.29% | 2.65% |
| Return on assets (ROA) | 17.61% | 5.46% | 10.01% | -8.70% | -2.27% |
| Return on total capital | 49.03% | 11.71% | 12.35% | -5.15% | 3.25% |
| Return on equity (ROE) | 47.56% | 23.33% | 50.63% | -84.71% | -13.65% |
Looking at the profitability ratios of Golden Entertainment Inc over the past five years, we can make several observations:
1. Operating return on assets (Operating ROA) has shown a decreasing trend over the period, with a high of 10.37% in 2021 to a low of -1.82% in 2020. This ratio indicates how efficiently the company is generating operating income from its assets.
2. Return on assets (ROA) has been volatile, ranging from -8.70% in 2020 to 17.61% in 2023. This ratio provides an overall view of the company's profitability in relation to its total assets.
3. Return on total capital has also exhibited fluctuations, hitting a low of -2.21% in 2020 and a high of 12.59% in 2022. This ratio measures the return the company generates from all of its invested capital.
4. Return on equity (ROE) has been the most erratic, varying from -84.71% in 2020 to 47.56% in 2023. ROE indicates how effectively the company is using shareholders' equity to generate profits.
Overall, the profitability ratios of Golden Entertainment Inc show inconsistency and volatility over the past five years, indicating varying levels of efficiency and profitability in utilizing assets and capital. Investors may need to delve deeper into the company's financial performance and strategy to understand the reasons behind these fluctuations.