Light & Wonder Inc (LNW)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 336,000 | 163,000 | 3,675,000 | 371,000 | -569,000 |
| Total assets | US$ in thousands | 5,421,000 | 5,552,000 | 6,009,000 | 7,883,000 | 7,984,000 |
| ROA | 6.20% | 2.94% | 61.16% | 4.71% | -7.13% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $336,000K ÷ $5,421,000K
= 6.20%
The return on assets (ROA) for Light & Wonder Inc has shown significant fluctuations over the years. In December 31, 2020, the ROA was negative at -7.13%, indicating that the company generated a net loss relative to its total assets. However, by December 31, 2021, the ROA improved to 4.71%, suggesting a positive return on its assets compared to the previous year.
The most notable increase in ROA was observed on December 31, 2022, reaching an impressive 61.16%. This sharp spike indicates that the company significantly increased its profitability in relation to its assets, possibly through increased efficiency or revenue generation.
Following the peak in 2022, the ROA decreased to 2.94% by December 31, 2023, but still remained positive, indicating a reasonable return on assets for the company. By December 31, 2024, the ROA improved to 6.20%, showing a positive trend in profitability relative to total assets.
Overall, the fluctuating trend in ROA for Light & Wonder Inc signals varying levels of performance in effectively utilizing its assets to generate profits. It is essential for the company to maintain or improve its ROA to ensure sustainable and efficient use of its asset base for future growth and shareholder value.
Peer comparison
Dec 31, 2024