Live Nation Entertainment Inc (LYV)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,092,961 | 1,249,383 | 1,175,538 | 1,071,478 | 1,141,289 | 1,187,288 | 1,031,159 | 831,849 | 670,723 | 536,375 | 211,937 | -167,253 | -390,716 | -613,344 | -1,222,567 | -1,688,555 | -1,630,205 | -1,335,738 | -588,137 | 172,856 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 173,263 | 287,966 | -43,267 | -114,832 | -17,148 | 221,751 | -187,377 | -460,846 | -367,569 | -74,560 | -410,164 | -517,817 | -582,651 | -404,844 | -912,762 | -730,560 | -471,772 | -99,430 | 341,925 | 859,354 |
| Return on total capital | 630.81% | 433.86% | — | — | — | 535.41% | — | — | — | — | — | — | — | — | — | — | — | — | -172.01% | 20.11% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,092,961K ÷ ($—K + $173,263K)
= 630.81%
Return on total capital is a key financial ratio that indicates how efficiently a company is generating returns from its total invested capital. In the case of Live Nation Entertainment Inc, the return on total capital varied significantly over the periods provided.
As of March 31, 2020, the company had a return on total capital of 20.11%, which indicates that Live Nation was able to generate a positive return on its invested capital during that period. However, the ratio plummeted to -172.01% by June 30, 2020, which suggests that the company incurred significant losses relative to its total capital during that quarter.
Subsequently, for the following quarters up to September 30, 2023, the return on total capital data is not available ("—"), possibly indicating a lack of specific financial reporting for those periods.
The ratio then showed a substantial improvement by September 30, 2023, with a return on total capital of 535.41%, indicating a significant increase in the efficiency of capital utilization by Live Nation. This trend continued with a return on total capital of 433.86% by September 30, 2024, and a further increase to 630.81% by December 31, 2024. These high percentages suggest that the company was able to generate a substantial return on its total invested capital during the latter part of the analyzed period.
Overall, based on the available data, Live Nation Entertainment Inc's return on total capital showed significant fluctuations, with periods of both positive and negative returns. The more recent data points indicate a considerable improvement in the company's efficiency in generating returns from its total capital.
Peer comparison
Dec 31, 2024