Live Nation Entertainment Inc (LYV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 824,510 | 1,066,200 | 732,118 | -413,616 | -1,652,690 |
| Total assets | US$ in thousands | 19,638,800 | 19,074,000 | 16,460,800 | 14,402,300 | 10,589,300 |
| Operating ROA | 4.20% | 5.59% | 4.45% | -2.87% | -15.61% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $824,510K ÷ $19,638,800K
= 4.20%
The operating return on assets (Operating ROA) of Live Nation Entertainment Inc has shown a varying trend over the years. At the end of December 31, 2020, the Operating ROA was -15.61%, indicating that the company was incurring operating losses relative to its assets. There was an improvement in the Operating ROA by the end of December 31, 2021, where it stood at -2.87%, but it was still negative.
Subsequently, there was a significant positive shift in the Operating ROA by the end of December 31, 2022, reaching 4.45%. This improvement suggests that the company managed to generate a positive return from its operating activities relative to its assets. The positive trend continued as of December 31, 2023, with the Operating ROA increasing to 5.59%, indicating further efficiency in asset utilization for operating purposes.
However, there was a slight decrease in the Operating ROA by the end of December 31, 2024, where it stood at 4.20%. This decrease, although minor, may warrant further investigation into the company's operating efficiency and asset management strategies.
Overall, the positive trajectory of the Operating ROA from negative values to positive percentages reflects an improvement in Live Nation Entertainment Inc's ability to generate operating returns from its assets over the specified period. It is essential for investors and stakeholders to monitor this ratio to assess the company's ongoing operational performance and efficiency in asset utilization.
Peer comparison
Dec 31, 2024