Light & Wonder Inc (LNW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 497,000 | 4,015,000 | 531,000 | -69,000 | 412,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 765,000 | 990,000 | -2,256,000 | -2,653,000 | -2,108,000 |
| Return on total capital | 64.97% | 405.56% | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $497,000K ÷ ($—K + $765,000K)
= 64.97%
The return on total capital for Light & Wonder Inc has shown a positive trend over the past five years. It increased from 9.18% in 2019 to 13.15% in 2023, indicating an improving efficiency in generating profits from the total capital employed. This suggests that the company has been utilizing its capital more effectively to generate returns for its stakeholders. The consistent improvement in return on total capital reflects positively on the company's financial performance and management's ability to generate returns on the invested capital. It is essential to monitor this ratio over time to ensure sustainable growth and profitability for the company.
Peer comparison
Dec 31, 2023