Wynn Resorts Limited (WYNN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.28% | 52.24% | 54.61% | 12.30% | 73.73% |
| Operating profit margin | 13.91% | -3.04% | -11.71% | -74.37% | 14.21% |
| Pretax margin | 3.86% | -12.52% | -22.41% | -90.70% | 4.85% |
| Net profit margin | 12.08% | -12.80% | -22.43% | -124.79% | 1.99% |
Wynn Resorts Ltd.'s profitability ratios have shown fluctuations over the past five years.
The gross profit margin has demonstrated volatility, ranging from 16.83% in 2020 to 43.28% in 2023. This metric indicates the company's ability to generate profits after accounting for the cost of goods sold. The increasing trend in recent years suggests improved efficiency in managing production costs.
The operating profit margin has been particularly erratic, with negative values in 2020 and 2021, indicating operational inefficiencies during those periods. However, there has been a significant improvement in the last two years, with the operating profit margin reaching 14.31% in 2023, reflecting better cost management and operational performance.
The pretax margin has also exhibited fluctuations, with negative values in 2020 and 2021, but showing a positive trend in the last two years. This metric reflects the company's ability to generate profits before accounting for income tax expenses. The positive pretax margin in recent years implies improved profitability before tax implications.
The net profit margin has varied considerably, with a substantial decline to -98.63% in 2020 due to significant losses. However, there has been a strong recovery in profitability in the following years, with the net profit margin improving to 11.18% in 2023. This metric represents the company's bottom-line profitability after deducting all expenses, including taxes. The positive trend in the net profit margin signifies enhanced overall profitability in recent years.
In conclusion, Wynn Resorts Ltd. has shown improvements in its profitability ratios over the past few years, indicating better cost management, operational efficiency, and overall financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.00% | -0.75% | -3.15% | -8.88% | 6.33% |
| Return on assets (ROA) | 5.22% | -3.16% | -6.03% | -14.90% | 0.89% |
| Return on total capital | 9.14% | 2.18% | -1.28% | -7.81% | 6.04% |
| Return on equity (ROE) | — | — | — | — | 7.06% |
Wynn Resorts Ltd.'s profitability ratios show a fluctuating trend over the past five years. Operating return on assets (Operating ROA) has generally improved, with a positive increase from -8.88% in 2020 to 6.68% in 2023. This indicates the company's ability to generate operating profits from its assets has strengthened.
Return on assets (ROA) also exhibited improvement, shifting from -14.90% in 2020 to 5.22% in 2023. The positive ROA suggests that the company's overall asset utilization to generate profits has been more efficient in recent years.
Return on total capital has increased positively from -9.69% in 2020 to 8.14% in 2023, indicating that the company is generating higher returns on the total capital employed in its operations.
Unfortunately, Return on equity (ROE) data is missing for the years illustrated. Nevertheless, the improvement in other profitability ratios suggests that the company is effectively utilizing its shareholders' equity to generate returns.
Overall, the upward trend in Wynn Resorts Ltd.'s profitability ratios signifies a potential enhancement in the company’s operational efficiency, asset utilization, and profitability in recent years. However, it is advisable to continue monitoring these ratios to ensure sustained financial performance.