Las Vegas Sands Corp (LVS)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	2,313,000	-792,000	-689,000	-1,393,000	3,365,000
Total assets	US$ in thousands	21,778,000	22,039,000	20,059,000	20,807,000	23,199,000
Operating ROA		10.62%	-3.59%	-3.43%	-6.69%	14.50%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $2,313,000K ÷ $21,778,000K
= 10.62%

Las Vegas Sands Corp's operating return on assets (ROA) measures the company's operating profitability relative to its total assets. The operating ROA for the company has fluctuated over the past five years, ranging from -7.73% in 2020 to 16.33% in 2019.

In 2023, the operating ROA improved to 10.74%, indicating a positive trend in operating efficiency and profitability. This could be attributed to better management of assets and operating activities, resulting in higher earnings generated from the assets employed.

However, the negative operating ROA figures in 2022 and 2021 (-3.55% and -3.30%, respectively) suggest that the company's operating income was insufficient to cover the costs associated with its assets during those years. This may raise concerns about the company's operational effectiveness and efficiency in utilizing its assets to generate profits.

The significant improvement in 2019, with an operating ROA of 16.33%, reflects a period of strong profitability relative to asset utilization. This indicates that Las Vegas Sands Corp was able to generate substantial operating income from its assets, showcasing efficient operational performance and effective utilization of resources during that year.

Overall, while the recent improvement in operating ROA is a positive indication for Las Vegas Sands Corp, the company should continue to focus on enhancing operational efficiency and profitability to ensure sustainable performance in the future.