Light & Wonder Inc (LNW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 188,000 | 3,688,000 | 53,000 | -572,000 | -177,000 |
| Revenue | US$ in thousands | 2,549,000 | 2,038,000 | 2,049,000 | 2,286,000 | 3,579,000 |
| Pretax margin | 7.38% | 180.96% | 2.59% | -25.02% | -4.95% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $188,000K ÷ $2,549,000K
= 7.38%
The pretax margin of Light & Wonder Inc has shown a fluctuating trend over the past five years. In 2023, the pretax margin improved significantly to 7.06%, indicating that the company was able to generate more profit before taxes relative to its revenue. This is a positive sign for the company's profitability and efficiency in managing its expenses.
However, prior to 2023, the pretax margin was negative, indicating that the company was experiencing losses before taxes in those years. The sharpest decline was observed in 2020, with a pretax margin of -19.97%, suggesting significant financial challenges during that period.
The improvement in the pretax margin in 2023 suggests that Light & Wonder Inc may have implemented cost-saving measures, increased revenue, or streamlined its operations to enhance profitability. Monitoring this ratio in conjunction with other financial metrics can provide valuable insights into the company's financial performance and prospects for future growth.
Peer comparison
Dec 31, 2023