Light & Wonder Inc (LNW)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 421,000 | 354,000 | 362,000 | 268,000 | 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 |
| 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 |
| Pretax margin | 14.58% | 12.39% | 13.02% | 10.09% | 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% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $421,000K ÷ $2,887,000K
= 14.58%
Light & Wonder Inc's pretax margin has shown a significant improvement over the years, moving from negative percentages to positive percentages. The pretax margin was notably negative in the early periods, indicating that the company was incurring losses before accounting for taxes. However, there was a turning point in the performance as the pretax margin gradually improved, reaching double-digit positive percentages in the latter periods.
The improvement in pretax margin suggests that the company has been able to enhance its operational efficiency and/or increase sales revenue relative to its operating costs and other expenses. The positive pretax margins in the latter periods indicate that the company was generating profits before tax deductions, which is a positive sign for its financial health and sustainability.
The significant increase in pretax margin from 2022 to 2024, with percentages soaring over 100%, indicates a substantial jump in profitability during those periods. This could be attributed to various factors such as cost-control measures, revenue growth, strategic business decisions, or improved operational effectiveness.
Overall, the trend of increasing pretax margin reflects a positive trajectory for Light & Wonder Inc, indicating that the company has been able to strengthen its financial performance and generate profits more efficiently over time.
Peer comparison
Dec 31, 2024