Light & Wonder Inc (LNW)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 668,000 | 518,000 | 273,000 | 110,000 | -245,000 |
| Total assets | US$ in thousands | 5,421,000 | 5,552,000 | 6,009,000 | 7,883,000 | 7,984,000 |
| Operating ROA | 12.32% | 9.33% | 4.54% | 1.40% | -3.07% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $668,000K ÷ $5,421,000K
= 12.32%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's efficiency in generating operating profits from its assets. Looking at Light & Wonder Inc's Operating ROA performance over the years, we observe a significant improvement in profitability.
At the end of December 31, 2020, Light & Wonder Inc had a negative Operating ROA of -3.07%, indicating that the company was not efficiently generating operating profits relative to its assets. However, by December 31, 2021, the company managed to turn around its performance, achieving an Operating ROA of 1.40%.
Subsequently, Light & Wonder Inc's Operating ROA continued to show positive growth, reaching 4.54% by December 31, 2022. This steady improvement in profitability suggests that the company was effectively utilizing its assets to generate operating income.
By December 31, 2023, Light & Wonder Inc's Operating ROA further increased to 9.33%, signaling a significant jump in profitability. This sharp rise indicates that the company's operational efficiency and asset utilization were notably enhanced during this period.
Finally, as of December 31, 2024, Light & Wonder Inc's Operating ROA reached 12.32%, showcasing a remarkable performance in generating operating profits relative to its assets. This suggests that the company was able to maximize its asset base to drive higher operating income.
Overall, the trend of increasing Operating ROA over the years indicates that Light & Wonder Inc has been successful in improving its operational efficiency and profitability, reflecting positively on its financial performance and asset management strategies.
Peer comparison
Dec 31, 2024