Light & Wonder Inc (LNW)

Net profit margin

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
Net income (ttm) US$ in thousands 336,000 295,000 306,000 223,000 163,000 126,000 379,000 3,671,000 3,675,000 3,740,000 3,594,000 412,000 371,000 186,000 -113,000 -425,000 -569,000 -522,000 -391,000 -265,000
Revenue (ttm) US$ in thousands 2,887,000 2,857,000 2,781,000 2,655,000 2,559,000 2,515,000 2,782,000 2,545,000 2,403,000 2,721,000 2,166,000 2,415,000 2,454,000 2,354,000 2,413,000 2,057,000 2,032,000 2,455,000 2,744,000 3,186,000
Net profit margin 11.64% 10.33% 11.00% 8.40% 6.37% 5.01% 13.62% 144.24% 152.93% 137.45% 165.93% 17.06% 15.12% 7.90% -4.68% -20.66% -28.00% -21.26% -14.25% -8.32%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $336,000K ÷ $2,887,000K
= 11.64%

Net profit margin is a key profitability ratio that indicates the percentage of each dollar of revenue that translates into profit after all expenses have been deducted.

In the case of Light & Wonder Inc, the net profit margin showed a declining trend from March 2020 to December 2021, reaching a low of -28.00% in December 2020. This indicates that the company was experiencing losses and struggling to generate profits relative to its revenue during this period.

However, there was a significant improvement in the net profit margin from March 2022 onwards, with the margin turning positive and exhibiting substantial growth. The net profit margin reached its peak at 165.93% in June 2022, indicating that the company was generating high profits relative to its revenue during that quarter.

Following this peak, the net profit margin experienced fluctuations but remained mostly positive from June 2022 to December 2024, indicating improved profitability for Light & Wonder Inc during these quarters.

Overall, the analysis of Light & Wonder Inc's net profit margin demonstrates a turnaround in profitability, shifting from significant losses to consistent profits from March 2022 onwards. This indicates an improvement in the company's operational efficiency and financial performance over the analyzed period.