Light & Wonder Inc (LNW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 714,000 | 497,000 | 4,015,000 | 531,000 | -69,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 636,000 | 765,000 | 990,000 | -2,256,000 | -2,653,000 |
| Return on total capital | 112.26% | 64.97% | 405.56% | — | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $714,000K ÷ ($—K + $636,000K)
= 112.26%
The return on total capital for Light & Wonder Inc has exhibited a fluctuating trend over the past five years. In 2020 and 2021, the return on total capital was not available, indicating a lack of data or perhaps a restructuring period for the company during that time.
However, in 2022, the return on total capital dramatically increased to 405.56%, showcasing a significant improvement in the company's efficiency in generating profits relative to its total capital employed. This sharp rise could be due to effective capital allocation or a surge in profitability during that year.
In the subsequent years, the return on total capital decreased but remained at relatively healthy levels. In 2023, the return on total capital stood at 64.97%, suggesting a moderation in the company's capital efficiency compared to the previous year. By 2024, the return on total capital slightly improved to 112.26%, indicating a rebound in the company's ability to generate returns on its total capital.
Overall, the varying performance of Light & Wonder Inc's return on total capital implies fluctuations in the company's efficiency in leveraging its total capital to generate profits over the specified period, with notable improvements and subsequent moderation in later years.
Peer comparison
Dec 31, 2024