Live Nation Entertainment Inc (LYV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,073,750 | 670,723 | -370,945 | -1,526,580 | 294,302 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -17,148 | -367,569 | -582,651 | -471,772 | 1,145,820 |
| Return on total capital | — | — | — | — | 25.68% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,073,750K ÷ ($—K + $-17,148K)
= —
The return on total capital for Live Nation Entertainment Inc has shown varying trends over the past five years. In 2023, the return on total capital was 15.92%, reflecting an improvement from the previous year's 12.84%. This indicates that the company was able to generate more profit relative to its total capital investment.
In 2021, Live Nation Entertainment Inc experienced a negative return on total capital of -8.09%, suggesting that the company did not effectively utilize its capital to generate profit. The situation worsened in 2020, with a significantly lower return on total capital of -37.37%, indicating financial challenges and inefficiencies in capital deployment.
The return on total capital rebounded in 2019 to 7.36%, showcasing a positive turn after the previous year's decline. Overall, Live Nation Entertainment Inc's return on total capital has shown volatility, with recent years displaying improvements in capital efficiency and profitability compared to the earlier periods.
Peer comparison
Dec 31, 2023