Golden Entertainment Inc (GDEN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 37,956 | 32,023 | 349,004 | 375,248 | 397,445 | 426,078 | 137,985 | 147,723 | 147,630 | 147,034 | 156,024 | 230,693 | 224,101 | 189,164 | 154,007 | -27,686 | -67,440 | -55,905 | -55,825 | 9,511 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 474,227 | 513,132 | 539,032 | 569,622 | 537,733 | 545,584 | 368,044 | 352,473 | 352,920 | 352,202 | 335,028 | 333,258 | 319,541 | 305,419 | 276,687 | 171,213 | 161,262 | 178,574 | 182,040 | 258,851 |
| Return on total capital | 8.00% | 6.24% | 64.75% | 65.88% | 73.91% | 78.10% | 37.49% | 41.91% | 41.83% | 41.75% | 46.57% | 69.22% | 70.13% | 61.94% | 55.66% | -16.17% | -41.82% | -31.31% | -30.67% | 3.67% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $37,956K ÷ ($—K + $474,227K)
= 8.00%
Golden Entertainment Inc's return on total capital has shown significant fluctuations over the given period. Starting at a low of -41.82% at the end of December 2020, the return improved steadily throughout 2021 and 2022, reaching a peak of 78.10% by the end of September 2023. However, there was a slight decrease in returns by the end of December 2024, which stood at 8.00%.
The return on total capital is a measure of how efficiently the company is using its capital to generate profits. The positive trend seen from 2021 to 2023 indicates an improvement in the company's ability to generate returns on its invested capital. However, the decrease in return by the end of 2024 suggests a potential decline in profitability or capital efficiency. Monitoring the return on total capital will be crucial to assess the company's financial performance and strategic decisions in the future.
Peer comparison
Dec 31, 2024