Golden Entertainment Inc (GDEN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 399,212 | 147,947 | 166,040 | -67,439 | 46,117 |
| Long-term debt | US$ in thousands | 276,453 | 910,461 | 1,025,000 | 1,147,000 | 1,130,370 |
| Total stockholders’ equity | US$ in thousands | 537,733 | 352,920 | 319,541 | 161,262 | 289,744 |
| Return on total capital | 49.03% | 11.71% | 12.35% | -5.15% | 3.25% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $399,212K ÷ ($276,453K + $537,733K)
= 49.03%
Golden Entertainment Inc's return on total capital has shown some fluctuations over the past five years. In 2023, the company generated a return of 9.05%, which represented a decrease compared to the previous two years where returns were 11.89% in 2022 and 12.59% in 2021. However, these returns were significantly higher than the negative return of -2.21% in 2020. The return on total capital improved from 2019 when it stood at 3.67%.
Overall, the trend indicates some variability in the company's ability to generate returns on its total capital. It would be important for stakeholders to further investigate the factors contributing to these fluctuations in order to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023