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

Company name
Symbol
Return on total capital
Live Nation Entertainment Inc
LYV
Six Flags Entertainment Corporation
FUN
TKO Group Holdings Inc.
TKO
8.59%
Warner Music Group
WMG
18.50%