Light & Wonder Inc (LNW)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 518,000 | 273,000 | 110,000 | -245,000 | 290,000 |
| Total assets | US$ in thousands | 5,552,000 | 6,009,000 | 7,883,000 | 7,984,000 | 7,809,000 |
| Operating ROA | 9.33% | 4.54% | 1.40% | -3.07% | 3.71% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $518,000K ÷ $5,552,000K
= 9.33%
The operating return on assets (operating ROA) for Light & Wonder Inc has fluctuated over the past five years. In 2023, the operating ROA increased significantly to 10.99%, indicating that the company generated a higher operating profit relative to its total assets compared to the previous years. This improvement suggests that Light & Wonder Inc may have effectively managed its operating expenses and utilized its assets more efficiently to generate operating income.
In 2022, the operating ROA was 6.97%, showing a moderate increase from the prior year but still below the levels seen in 2023. The 2021 operating ROA of 3.51% indicates a gradual improvement compared to 2020, suggesting that the company may have implemented operational efficiencies during that period.
The operating ROA in 2020 was 1.79%, reflecting a lower profitability level, possibly due to operational challenges or economic conditions affecting the company's performance. However, there was a significant improvement in 2019 with an operating ROA of 7.35%, indicating higher profitability relative to assets compared to the preceding year.
Overall, the trend in Light & Wonder Inc's operating ROA shows variations in performance over the five-year period, with notable improvements in 2023 and 2019. Investors and stakeholders may view the increasing trend positively as it suggests enhanced operational efficiency and profitability for the company.
Peer comparison
Dec 31, 2023