Light & Wonder Inc (LNW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 636,000 | 765,000 | 990,000 | -2,256,000 | -2,653,000 |
| ROE | 52.83% | 21.31% | 371.21% | — | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $336,000K ÷ $636,000K
= 52.83%
Light & Wonder Inc's return on equity (ROE) has shown significant fluctuations over the years. In 2020 and 2021, the ROE was not available ("—"), indicating a lack of profitability or potentially limited data availability.
The ROE then surged in 2022 to an impressive 371.21%, indicating that the company generated substantial profits relative to its shareholder equity. This sharp increase could be attributed to improved operational efficiency, cost management, or possibly a high leverage ratio.
However, there was a notable decline in ROE in 2023 to 21.31%, suggesting a decrease in the company's ability to generate earnings from its equity base. This decline could be a result of various factors such as economic conditions, increased competition, or operational challenges.
In 2024, the ROE rebounded to 52.83%, showing a partial recovery from the previous year's decline. This improvement may indicate that the company implemented strategies to enhance profitability or efficiency.
Overall, Light & Wonder Inc's ROE has been volatile, with significant fluctuations year over year. It would be advisable for stakeholders to further investigate the underlying reasons behind these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024