Wynn Resorts Limited (WYNN)

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	984,669	236,361	-149,750	-946,100	713,855
Long-term debt	US$ in thousands	11,028,700	11,569,300	11,884,500	12,469,400	10,080,000
Total stockholders’ equity	US$ in thousands	-251,382	-750,838	-214,418	-351,997	1,743,040
Return on total capital		9.14%	2.18%	-1.28%	-7.81%	6.04%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $984,669K ÷ ($11,028,700K + $-251,382K)
= 9.14%

The return on total capital for Wynn Resorts Ltd. has shown varying trends in recent years.

In 2023, the company generated a return on total capital of 8.14%, indicating an improvement compared to the negative returns in the previous two years. This positive return suggests that the company effectively utilized its total capital to generate profits for its stakeholders.

However, in 2022 and 2021, Wynn Resorts Ltd. reported negative returns on total capital, indicating that the company may have struggled to generate profits from its invested capital during those periods.

Moreover, in 2020, the return on total capital was significantly negative at -9.69%, which could be a concern for investors as it suggests that the company may have faced challenges in generating returns relative to its total invested capital.

On a positive note, in 2019, Wynn Resorts Ltd. demonstrated a healthy return on total capital of 7.23%, indicating efficient capital utilization and profitability.

Overall, the return on total capital for Wynn Resorts Ltd. has been volatile in recent years, with fluctuations between positive and negative returns. Investors and stakeholders may want to closely monitor the company's capital allocation strategies and profitability trends to assess its long-term financial performance.