Light & Wonder Inc (LNW)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 163,000 | 3,675,000 | 371,000 | -569,000 | -130,000 |
| Total assets | US$ in thousands | 5,552,000 | 6,009,000 | 7,883,000 | 7,984,000 | 7,809,000 |
| ROA | 2.94% | 61.16% | 4.71% | -7.13% | -1.66% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $163,000K ÷ $5,552,000K
= 2.94%
The return on assets (ROA) for Light & Wonder Inc has exhibited significant fluctuations over the past five years. In 2023, the ROA stands at 2.94%, representing a notable decrease from the exceptionally high ROA of 61.16% in 2022. This substantial drop indicates a significant decline in the company's ability to generate profit from its assets compared to the previous year.
Looking back further, the ROA was 4.71% in 2021, showing a positive performance compared to 2020 and 2019 when the ROA was -7.13% and -1.66%, respectively. The negative ROAs in 2020 and 2019 suggest that the company's assets were not effectively utilized to generate profits during those years.
Overall, the fluctuating trend in ROA for Light & Wonder Inc indicates varying levels of efficiency in utilizing its assets to generate profits over the years. It is crucial for the company to identify the factors contributing to these fluctuations and implement strategies to improve its asset management and profitability in the future.
Peer comparison
Dec 31, 2023