Wynn Resorts Limited (WYNN)
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 | 1,160,972 | 1,208,780 | 1,124,955 | 1,130,213 | 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 |
| Long-term debt | US$ in thousands | 10,500,500 | 10,547,500 | 9,739,420 | 9,920,130 | 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 |
| Total stockholders’ equity | US$ in thousands | -224,161 | -281,402 | -109,824 | -136,953 | -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 |
| Return on total capital | 11.30% | 11.77% | 11.68% | 11.55% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,160,972K ÷ ($10,500,500K + $-224,161K)
= 11.30%
Based on the data provided, Wynn Resorts Limited's return on total capital has fluctuated over the past several quarters. From March 31, 2020, to June 30, 2022, the company experienced negative returns on total capital, indicating challenges in generating sufficient profits relative to the total capital employed in its operations.
However, starting from December 31, 2022, there was a notable improvement in the return on total capital, with positive percentages reported for the subsequent quarters. The trend continued to strengthen through the end of 2024, reaching a return on total capital of 11.30% as of December 31, 2024.
This turnaround suggests that Wynn Resorts Limited has been able to enhance its operational efficiency and profitability, effectively utilizing its capital resources to generate higher returns for its shareholders. The increasing trend in return on total capital reflects positively on the company's financial performance and may indicate a more sustainable and profitable business model moving forward.
Peer comparison
Dec 31, 2024