Light & Wonder Inc (LNW)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 189,000 | 159,000 | 402,000 | 3,680,000 | 3,688,000 | 3,594,000 | 3,272,000 | 95,000 | 54,000 | 12,000 | -112,000 | -428,000 | -571,000 | -568,000 | -443,000 | -312,000 | -177,000 | 135,000 | -228,000 | -164,000 |
| Revenue (ttm) | US$ in thousands | 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 | 3,440,000 | 3,422,700 | 3,388,700 | 3,388,700 |
| Pretax margin | 7.39% | 6.32% | 14.45% | 144.60% | 153.47% | 132.08% | 151.06% | 3.93% | 2.20% | 0.51% | -4.64% | -20.81% | -28.10% | -23.14% | -16.14% | -9.79% | -5.15% | 3.94% | -6.73% | -4.84% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $189,000K ÷ $2,559,000K
= 7.39%
The pretax margin of Light & Wonder Inc has shown a mixed performance over the past eight quarters. The company experienced a significant improvement in Q4 2023 with a pretax margin of 7.06%, indicating that the company was able to generate higher profits relative to its revenue before taxes. This represents a positive trend compared to the previous quarter, Q3 2023, where the pretax margin was 5.90%.
Looking further back, the company's performance in Q2 2023 and Q1 2023 also showed positive pretax margins of 3.52% and -2.80%, respectively. While a negative pretax margin in Q1 2023 indicates that the company's expenses exceeded its earnings before taxes, the improvement in Q2 2023 suggests a positive turnaround in its profitability.
Moreover, the company faced challenges in the preceding quarters, with pretax margins of -6.49%, -28.66%, -36.04%, and -17.64% in Q4 2022, Q3 2022, Q2 2022, and Q1 2022, respectively. These negative figures imply that the company was struggling to generate profits before tax during those periods, possibly due to high expenses or lower revenue.
Overall, the recent improvement in pretax margin is a positive sign for Light & Wonder Inc, indicating better profitability. However, it is important for the company to sustain this positive trend and effectively manage its expenses to ensure continued financial success.
Peer comparison
Dec 31, 2023