Light & Wonder Inc (LNW)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 667,000 | 642,000 | 650,000 | 567,000 | 498,000 | 463,000 | 696,000 | 3,966,000 | 4,015,000 | 3,911,000 | 3,545,000 | 251,000 | 110,000 | 96,000 | 32,000 | -92,000 | -128,000 | -222,000 | -49,000 | 135,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 636,000 | 858,000 | 786,000 | 835,000 | 765,000 | 959,000 | 1,048,000 | 1,008,000 | 990,000 | 1,071,000 | 811,000 | -2,289,000 | -2,256,000 | -2,335,000 | -2,509,000 | -2,656,000 | -2,653,000 | -2,541,000 | -2,479,000 | -2,358,000 |
| Return on total capital | 104.87% | 74.83% | 82.70% | 67.90% | 65.10% | 48.28% | 66.41% | 393.45% | 405.56% | 365.17% | 437.11% | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $667,000K ÷ ($—K + $636,000K)
= 104.87%
Light & Wonder Inc's Return on Total Capital has shown significant fluctuations over the given periods. The ratio remained steady at an undisclosed level from March 2020 to June 2022.
However, there was a substantial increase in the Return on Total Capital from June 2022 to December 2022, reaching 405.56%. This indicates that the company efficiently utilized its total capital to generate profits during this period.
Subsequently, there was a notable decrease in the ratio in the following quarters, with the ratio ranging from 48.28% to 104.87% from September 2023 to December 2024. Despite the fluctuation, the company maintained a Return on Total Capital above 48% throughout this period.
The increase in the ratio in December 2024 to 104.87% suggests an improvement in the company's ability to generate profits from its total capital investment. Overall, the trend in Light & Wonder Inc's Return on Total Capital demonstrates both volatility and potential for efficient capital utilization.
Peer comparison
Dec 31, 2024