Live Nation Entertainment Inc (LYV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.67% | 5.21% | -3.62% | -84.58% | 4.02% |
| Operating profit margin | 4.69% | 4.39% | -6.67% | -88.82% | 2.81% |
| Pretax margin | 3.18% | 2.35% | -10.42% | -94.21% | 1.18% |
| Net profit margin | 2.48% | 1.77% | -10.38% | -92.66% | 0.61% |
The profitability ratios of Live Nation Entertainment Inc have shown significant fluctuation over the past five years. The gross profit margin, which indicates the efficiency of the company's production process, has exhibited variability, from as low as 23.99% in 2023 to a high of 100% in 2022 and 2020. This suggests that in some years, the company was able to generate a higher percentage of revenue after deducting the cost of goods sold.
The operating profit margin, reflecting the company's ability to control operating expenses, ranged from negative figures in 2021 and 2020 to positive values in other years, with a low of -89.09% in 2020 and a high of 4.60% in 2023. This indicates that Live Nation faced challenges in managing its operating costs during some years but was able to achieve profitability in others.
The pretax margin, which shows the company's profitability before taxes, experienced fluctuations as well, with negative margins in 2021, 2020, and 2019, indicating challenges in generating profits before tax deductions. The net profit margin, a measure of the company's overall profitability, also varied greatly, with negative margins in 2021, 2020, and 2019, suggesting Live Nation faced difficulties in generating profits after all expenses, including taxes.
Overall, Live Nation's profitability ratios highlight the company's inconsistent performance in managing costs and generating profits over the past five years, reflecting challenges in maintaining profitability amidst changing market dynamics and operating conditions.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.59% | 4.45% | -2.90% | -15.61% | 2.96% |
| Return on assets (ROA) | 2.95% | 1.80% | -4.52% | -16.29% | 0.64% |
| Return on total capital | — | — | — | — | 25.68% |
| Return on equity (ROE) | — | — | — | — | 6.10% |
Live Nation Entertainment Inc's profitability ratios have shown fluctuating trends over the past five years. Operating return on assets (Operating ROA) has gradually improved from -15.66% in 2020 to 5.49% in 2023, indicating better efficiency in generating profits from its assets. Similarly, Return on assets (ROA) has also shown improvement, albeit with some variability, from -16.29% in 2020 to 1.66% in 2023, suggesting better overall profitability from its total assets.
Return on total capital has shown a similar positive trend, increasing from -37.37% in 2020 to 15.92% in 2023, reflecting the company's ability to generate returns from its entire capital base. However, the Return on equity (ROE) data is missing for the earlier years, which limits a comprehensive analysis of the company's profitability specifically related to shareholder equity.
Overall, Live Nation Entertainment Inc's profitability ratios have shown improvement in recent years, indicating enhanced operational efficiency and profitability, although there may be room for further growth and stability in these metrics.