Wynn Resorts Limited (WYNN)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	984,669	787,081	741,712	467,477	236,361	-7,854	-46,398	-52,143	-149,750	-242,297	-433,163	-876,323	-946,100	-628,927	-292,409	316,699	713,846	709,190	823,529	873,781
Long-term debt	US$ in thousands	11,028,700	11,678,700	12,101,500	12,107,000	11,569,300	11,570,400	11,367,900	11,872,900	11,884,500	11,693,800	10,612,600	11,755,200	12,469,400	12,563,000	12,477,200	11,133,000	10,080,000	9,421,840	9,095,290	9,133,560
Total stockholders’ equity	US$ in thousands	-251,382	-821,764	-630,253	-717,434	-750,838	-763,153	-609,362	-337,040	-214,418	-53,238	102,752	233,683	-351,997	-128,703	619,519	1,242,090	1,743,040	1,918,750	2,050,820	2,078,220
Return on total capital		9.14%	7.25%	6.47%	4.10%	2.18%	-0.07%	-0.43%	-0.45%	-1.28%	-2.08%	-4.04%	-7.31%	-7.81%	-5.06%	-2.23%	2.56%	6.04%	6.25%	7.39%	7.79%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 8.14%, marking a significant improvement from the previous quarter, where it was 4.50%. This increase indicates that the company's ability to generate profits from its total capital has improved.

Looking back over the past two years, there was a negative trend in the return on total capital, with values in negative territory for five out of the eight quarters. However, there seems to be some recovery starting from Q3 2023, as the returns have been gradually increasing since then.

It is essential for Wynn Resorts Ltd. to continue monitoring and improving its return on total capital to ensure efficient utilization of its capital resources and to drive overall profitability. The recent positive trend in return on total capital is a promising indicator, but sustained efforts will be needed to enhance long-term financial performance.