Live Nation Entertainment Inc (LYV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.17% | 23.99% | 26.04% | 30.51% | 24.65% |
| Operating profit margin | 3.56% | 4.69% | 4.39% | -6.60% | -88.80% |
| Pretax margin | 3.19% | 3.93% | 3.03% | -9.75% | -99.76% |
| Net profit margin | 3.87% | 2.48% | 2.45% | -9.71% | -98.21% |
Live Nation Entertainment Inc's profitability ratios show varying levels of performance over the years.
1. Gross Profit Margin: The company's gross profit margin has shown some fluctuations but generally improved from 24.65% in 2020 to 30.51% in 2021, indicating efficient cost management in generating revenue. However, there was a slight decline to 26.04% in 2022 and further to 23.99% in 2023, potentially signaling challenges in maintaining profitability. The margin then rebounded to 25.17% in 2024.
2. Operating Profit Margin: Live Nation's operating profit margin experienced a significant improvement from -88.80% in 2020 to -6.60% in 2021, suggesting some level of operational efficiency enhancement. Subsequently, the margin turned positive at 4.39% in 2022 and slightly increased to 4.69% in 2023 before slightly declining to 3.56% in 2024. This indicates a positive trend in the company's ability to generate profits from its core operations.
3. Pretax Margin: The pretax margin also saw notable improvements over the years. The margin was severely negative at -99.76% in 2020 but recovered to -9.75% in 2021, reaching positive territory at 3.03% in 2022. It then continued to improve to 3.93% in 2023 before slightly decreasing to 3.19% in 2024. This suggests that Live Nation has been able to better manage its pre-tax profitability.
4. Net Profit Margin: The net profit margin, which reflects the company's bottom line profitability, showcased a similar positive trend. Starting from a deeply negative -98.21% in 2020, the margin improved to -9.71% in 2021, and turned positive at 2.45% in 2022. It further increased to 2.48% in 2023 and finally reached 3.87% in 2024, indicating an upward trajectory in overall profitability.
In conclusion, Live Nation Entertainment Inc has shown improvements in its profitability ratios over the years, reflecting enhanced operational efficiency and better control over costs. However, the company experienced some fluctuations in profitability margins, which may require ongoing monitoring to ensure sustained financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.20% | 5.59% | 4.45% | -2.87% | -15.61% |
| Return on assets (ROA) | 4.56% | 2.95% | 2.49% | -4.23% | -17.26% |
| Return on total capital | 614.90% | — | — | — | — |
| Return on equity (ROE) | 517.30% | — | — | — | — |
Live Nation Entertainment Inc's profitability ratios show a mixed performance over the years.
- Operating Return on Assets (Operating ROA): The company's operating ROA has improved significantly from -15.61% in 2020 to 5.59% in 2023, indicating that management has been able to generate more operating income relative to its assets over time.
- Return on Assets (ROA): The overall ROA also shows a positive trend, increasing from -17.26% in 2020 to 4.56% in 2024. This signifies that Live Nation has been able to generate a higher level of profit from its assets during this period.
- Return on Total Capital: The return on total capital was not provided for the years under consideration except for an extremely high value of 614.90% in 2024. This could indicate that the company has been very efficient in utilizing its total capital to generate profit.
- Return on Equity (ROE): The ROE shows a significant improvement from 0% in 2020 to 517.30% in 2024. This suggests that the company has been able to generate substantial returns for its shareholders' equity, possibly through effective management of debt and equity.
Overall, Live Nation Entertainment Inc's profitability ratios reflect a positive trend, showing improvements in generating income in relation to its assets, total capital, and equity over the years, potentially indicating strong operational performance and efficient capital utilization.