Golden Entertainment Inc (GDEN)
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 | 107,678 | 397,953 | 147,947 | 223,372 | -67,440 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 474,227 | 537,733 | 352,920 | 319,541 | 161,262 |
| Return on total capital | 22.71% | 74.01% | 41.92% | 69.90% | -41.82% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $107,678K ÷ ($—K + $474,227K)
= 22.71%
Golden Entertainment Inc's return on total capital has shown significant fluctuations over the years.
In December 2020, the return on total capital was -41.82%, indicating that the company's capital employed in its operations resulted in a negative return.
By December 2021, the return on total capital had substantially improved to 69.90%, showing a strong rebound in capital efficiency. This suggests that the company was able to generate a higher return relative to the total capital deployed.
In 2022, the return on total capital decreased slightly to 41.92%, indicating a moderate decline in capital efficiency compared to the previous year.
By December 2023, the return on total capital surged to 74.01%, reflecting a significant improvement in capital utilization and profitability.
However, by December 2024, the return on total capital dropped to 22.71%, signifying a decrease in the efficiency of the company's capital allocation.
Overall, the fluctuating trend in Golden Entertainment Inc's return on total capital highlights the volatility in the company's ability to generate returns on the total capital employed in its operations. Further investigation into the company's financial strategies and operational performance may be warranted to understand the factors driving these fluctuations.
Peer comparison
Dec 31, 2024