Live Nation Entertainment Inc (LYV)
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 | 1,066,200 | 732,118 | -417,858 | -1,653,190 | 324,844 |
| Total assets | US$ in thousands | 19,074,000 | 16,460,800 | 14,402,300 | 10,589,300 | 10,975,600 |
| Operating ROA | 5.59% | 4.45% | -2.90% | -15.61% | 2.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,066,200K ÷ $19,074,000K
= 5.59%
Live Nation Entertainment Inc's operating return on assets (ROA) has exhibited notable fluctuations over the past five years. In 2023, the operating ROA increased to 5.49%, a significant improvement from 4.25% in 2022. This indicates that the company generated 5.49 cents of operating income for every dollar of assets employed in its operations in 2023.
The positive trend observed in 2023 follows a period of volatility, including a negative operating ROA of -2.89% in 2021 and a substantial decrease to -15.66% in 2020. The negative figures in 2020 and 2021 suggest that the company experienced challenges in generating operating income relative to its asset base during those years.
Nevertheless, Live Nation Entertainment Inc managed to reverse this trend and achieve a positive operating ROA of 5.49% in 2023, signaling a more efficient utilization of assets to generate operating profits. This improvement may indicate enhanced operational performance, cost management, or revenue generation strategies implemented by the company in recent years.
Overall, the upward trajectory in operating ROA in 2023 demonstrates Live Nation Entertainment Inc's ability to enhance its operational efficiency and profitability relative to its asset base, which can be a positive indicator for investors and stakeholders.
Peer comparison
Dec 31, 2023