Las Vegas Sands Corp. (NYSE:LVS)

The financial data presents the annual current and deferred income tax expenses, as well as the total income tax expense (benefit) for a five-year span from December 31, 2018, through December 31, 2022. The values are expressed in millions of US dollars.

Current Income Tax Expense

The current income tax expense shows a general upward trend from 2018 to 2019, increasing from $262 million to $311 million. In 2020, there is a significant reversal to a negative value of -$6 million, indicating a current income tax benefit rather than an expense. This switches back to positive figures in 2021 and 2022, with the amounts being $40 million and $156 million respectively. While the expense in 2022 is notable, it does not reach the 2019 peak, suggesting some stabilization after the volatility in 2020.

Deferred Income Tax Expense

Deferred income tax expense follows a different pattern with an increase from $113 million in 2018 to $157 million in 2019. However, this is followed by a significant decline, turning negative in 2020 at -$32 million, thereby reflecting a deferred tax benefit. This downward trajectory continues through 2021, with the expense further decreasing to -$45 million, and nearing zero at -$2 million by 2022. The data indicates that deferred tax liabilities are being reduced or deferred tax assets are being recognized more substantially starting in 2020, continuing through the subsequent years.

Total Income Tax Expense (Benefit)

The total income tax expense, which is the sum of current and deferred components, mirrors the combined trends observed in the individual categories. In 2018, the total tax expense was $375 million, increasing notably to $468 million in 2019. The subsequent years exhibit a marked shift to negative territory in 2020 (-$38 million) and slightly negative in 2021 (-$5 million), signifying overall income tax benefits during this period. By 2022, the total income tax expense rebounds to a positive value of $154 million, indicating a partial recovery but not back to previous peak levels.

Overall, the data reflects a period of tax expense growth until 2019, followed by a dramatic reversal to tax benefits from 2020 through 2021, especially pronounced in deferred tax figures. The return to positive tax expense levels in 2022 indicates a change in tax dynamics, possibly due to improved profitability, changes in tax regulations, or adjustments in deferred tax assets and liabilities. The volatility observed from 2020 onward warrants further investigation to understand the underlying causes of these fluctuations.

The analysis of the tax-related financial metrics over the five-year period reveals several notable trends and changes that have occurred.

Statutory Federal Income Tax Rate

The statutory federal income tax rate remained constant at 21% throughout the entire period, indicating no changes in the baseline tax policy affecting the company.

Change in Valuation Allowance

This metric showed a decreasing trend starting from a positive value of 4.5% in 2018 and declining each subsequent year to -15.8% by 2022. The shift from positive to increasingly negative values suggests an improving valuation outlook or release of valuation allowances, which could indicate expectations of higher future taxable income or improved asset recoverability.

Foreign and U.S. Tax Rate Differential

The differential between foreign and U.S. tax rates fluctuated slightly but generally increased in negative magnitude, moving from -6.5% in 2018 to -9% in 2022. This trend implies a growing disparity where foreign tax rates applied to the company's income are increasingly lower compared to the U.S. tax rate, potentially reflecting benefits from operations in jurisdictions with lower tax rates.

Tax Exempt Loss of Foreign Subsidiary

This metric exhibited variability, initially at -8.3% in 2018 and becoming less negative until 2021, when it reached -0.6%. However, it sharply moved back towards a more negative figure of -4.5% in 2022. The pattern may indicate fluctuations in the recognition of tax-exempt losses over time, likely tied to performance of foreign subsidiaries or changes in tax treatment.

Other, Net

The "Other, net" category showed considerable volatility with small positive values in 2018 and 2019 (0.6% and 2.3%), turning slightly negative from 2020 onward, reaching -2.8% in 2022. This suggests that miscellaneous factors impacting the tax rate have shifted from positively influencing the effective tax rate to exerting a modest negative influence in recent years.

Effective Tax Rate

The effective tax rate experienced a consistent downward trajectory, starting at 11.3% in 2018 and dropping dramatically to -11.1% in 2022. This significant decline includes notably low points in 2020 (1.7%) and 2021 (0.3%), culminating in a negative tax rate in 2022. Such a negative effective tax rate indicates the company recognized tax benefits or credits exceeding its tax liabilities, which could be due to changes in valuation allowances, foreign tax differentials, or other tax planning strategies.

Overall, the data portrays a company benefiting increasingly from reductions in its effective tax burden, supported by a release of valuation allowances and an expanding benefit from lower foreign tax rates. These patterns reflect strategic tax management and evolving international tax exposures that have materially influenced the company's effective tax rate over the analyzed period.

The financial data over the five-year period exhibits several notable trends in the company's tax-related assets and liabilities, expenses, and other balance sheet components.

U.S. Foreign Tax Credit Carryforwards

This item shows a decline from $4,919 million in 2018 to $3,720 million in 2022. The values remained relatively stable from 2018 through 2021, ranging narrowly around the 4,800 million mark, before dropping significantly in 2022.

Net Operating Loss Carryforwards

There is a general increasing trend from 2018 ($271 million) through 2021 ($539 million), followed by a decrease in 2022 to $481 million.

Stock-Based Compensation

This expense shows a gradual increase over the period, rising from $13 million in 2018 to $17 million in 2022, indicating a steady increase in stock-based remuneration costs.

Accrued Expenses

The values fluctuate without a clear trend, starting at $16 million in 2018, peaking at $23 million in 2019, dropping sharply to $9 million in 2022. The pattern suggests variability in accrued expenses year-over-year.

Provision for Credit Losses

This item remains relatively stable at $14-16 million from 2018 to 2021 but experiences a significant reduction to $1 million in 2022.

Interest Expense Carryforward

Information appears only for 2021 at $18 million, with no data in other years, indicating either the initiation or recognition of this carryforward in that year only.

Deferred Gain on Mall Sale Transactions

Shows a steady decline from $14 million in 2018 to $11 million in 2021, disappearing by 2022.

Pre-opening Expenses

These expenses decrease progressively from $11 million in 2018 to $6 million in 2021, with no value reported in 2022.

State Deferred Items

A decline from $10 million in 2018 to missing values thereafter suggests either elimination or non-recognition of this item after 2018.

Other Deferred Assets

There is an increase in the 'Other' category associated with deferred assets from minimal amounts ($1 million) early in the period to a higher value of $14 million in 2022, indicating rising miscellaneous deferred items.

Deferred Tax Assets, Gross

The gross deferred tax assets remained fairly stable between 2018 and 2021 (ranging approximately $5,271 million to $5,442 million) but declined notably to $4,242 million in 2022.

Valuation Allowances

This account gradually increases in magnitude (more negative) from -$4,769 million in 2018 to -$5,034 million in 2021, before decreasing significantly to -$4,083 million in 2022, mirroring the drop in gross deferred tax assets.

Deferred Tax Assets (Net of Valuation Allowances)

Net deferred tax assets decreased from $502 million in 2018 to $159 million in 2022, after fluctuations in intervening years. This trend reflects the corresponding changes in gross assets and allowances.

Property and Equipment

Presented on the asset side but with negative values, this category deepens in deficit from -$245 million in 2018 to -$274 million in 2020, and recovers to -$174 million by 2022, possibly indicating asset disposals or revaluations.

Prepaid Expenses

Generally low negative values fluctuate, with a slight easing from -$5 million at the trough to -$2 million in 2022.

Other Deferred Tax Liabilities

These liabilities decrease steadily from -$325 million in 2018 to -$180 million in 2022, a trend consistent with the reduction in deferred tax assets and valuation allowances.

Deferred Tax Assets (Liabilities), Net

The net deferred tax figure moves from a positive $177 million in 2018 to a negative balance of -$21 million in 2022, suggesting a shift from a net asset position to a net liability position by the end of the period.

Overall, the data indicate a general decline in deferred tax assets and associated valuation allowances by 2022, declines in various deferred and prepaid expenses, and a transition in net deferred tax balances from asset to liability. The company shows variability in accrued expenses and credit loss provisions, while stock-based compensation costs track slightly higher over the period. Changes in property and equipment values suggest asset adjustments. The overall patterns reflect shifts in tax positions and balance sheet compositions over the five years examined.

The financial data reflects changes in deferred tax assets and liabilities over a five-year period from 2018 through 2022.

Deferred Tax Assets

Deferred tax assets exhibit a declining trend overall. Starting at 368 million US dollars in 2018, the value decreased to 282 million in 2019. It slightly recovered in 2020 to 318 million but then declined again in subsequent years, reaching 297 million in 2021 and dropping significantly to 131 million by the end of 2022. This downward movement in deferred tax assets may indicate a reduction in temporary differences that result in deductible amounts or changes in the company’s expectations regarding the utilization of these assets.

Deferred Tax Liabilities

Deferred tax liabilities show minor fluctuations but follow a general downward trend across the same period. Starting at 191 million US dollars in 2018, these liabilities decreased slightly to 183 million in 2019, rose marginally to 188 million in 2020, and then declined steadily to 173 million in 2021 and 152 million in 2022. The gradual reduction in deferred tax liabilities suggests that taxable temporary differences are reducing over time, potentially as a result of changes in asset bases or tax planning strategies.

Overall Insights

Both deferred tax assets and liabilities decreased between 2018 and 2022, with a sharper reduction observed in deferred tax assets. The most pronounced drop occurred in 2022 for deferred tax assets, which may impact future tax expense recognition and cash flow. The narrowing gap between deferred tax assets and liabilities could reflect underlying shifts in the company’s tax position or changes in operations affecting timing differences. Continuous monitoring is advisable as these items influence tax expense volatility and future tax payments.

The financial data for the company over the five-year period ending December 31, 2022, exhibits notable trends and fluctuations across key balance sheet and income statement items.

Total Assets

Reported total assets showed a gradual increase from 2018 (22,547 million USD) to 2019 (23,199 million USD), followed by a significant decline in 2020 (20,807 million USD) and a further decrease in 2021 (20,059 million USD). Assets partially recovered in 2022 to 22,039 million USD but remained below the 2018-2019 levels. The adjusted total assets mirrored this pattern closely, indicating that the adjustments did not substantially alter the overall asset trend.

Total Liabilities

Reported total liabilities consistently increased each year from 2018 (15,802 million USD) to 2022 (18,383 million USD). This upward trajectory implies a gradual accumulation of obligations. The adjusted liabilities followed a nearly identical pattern, suggesting stability in liability adjustments over time.

Stockholders’ Equity

The reported stockholders’ equity experienced a downward trend from 2018 (5,684 million USD) to 2021 (1,996 million USD), with a stark decline particularly visible between 2019 and 2020. In 2022, equity rebounded to 3,881 million USD but did not reach the initial levels of 2018. Adjusted equity values followed a similar trajectory, displaying substantial erosion during the pandemic years before an appreciable recovery in 2022.

Net Income (Loss) Attributable to the Company

Reported net income demonstrated strong positive results in 2018 and 2019, with 2,413 million USD and 2,698 million USD, respectively. However, 2020 and 2021 showed considerable losses of -1,685 million USD and -961 million USD, reflecting severe operational or external challenges during these years. In 2022, net income returned to profitability at 1,832 million USD. The adjusted net income trend was consistent with the reported figures, exhibiting marginally higher profitability in the positive years and slightly greater losses in the negative years.

Overall, the data indicate that the company faced significant financial challenges starting in 2020, likely linked to external factors affecting profitability and equity negatively. Both assets and equity declined during this period, while liabilities continued to grow steadily, highlighting increased financial leverage. The rebound in 2022 suggests a recovery phase, with improved net income and equity levels, although some key metrics had not yet returned to pre-2020 highs. The adjusted figures closely reflect the reported data, indicating that the applied corrections related to income tax adjustments did not materially alter the financial trends observed.

Net Profit Margin

The reported net profit margin exhibited an overall volatile trend over the five-year period. It increased from 17.58% in 2018 to a peak of 19.64% in 2019, followed by a dramatic decline into negative territory in 2020 and 2021, reaching -46.65% and -22.7% respectively. A strong recovery is noted in 2022, with margin surging to 44.57%. The adjusted net profit margin closely mirrors this pattern, suggesting that reporting adjustments had minimal impact on the margin’s trajectory.

Total Asset Turnover

The reported total asset turnover remained relatively stable from 2018 to 2019, slightly decreasing from 0.61 to 0.59. However, a sharp decline occurred in 2020 to 0.17, likely reflecting operational challenges, with a subsequent modest recovery to 0.21 in 2021 and a slight dip to 0.19 in 2022. The adjusted figures affirm this trend, indicating consistency between reported and adjusted measurements.

Financial Leverage

Financial leverage increased steadily from 3.97 in 2018 to 4.47 in 2019, noticeably spiked to 7.00 in 2020, and further escalated to its highest level of 10.05 in 2021. By 2022, leverage subsided to 5.68, indicating a partial deleveraging. Adjusted financial leverage follows a very similar pattern, with slightly higher values in some years, signaling that adjustments slightly amplified leverage ratios but did not change overall trends.

Return on Equity (ROE)

The reported ROE showed strong positive returns in 2018 and 2019, increasing from 42.45% to 52.01%. A sharp reversal occurred in 2020 and 2021 with negative returns reaching -56.68% and -48.15%. In 2022, ROE rebounded substantially to 47.20%. Adjusted ROE depicts a comparable pattern with marginally more extreme negative values in 2020 and 2021 and a slightly lower recovery in 2022, implying adjustments intensified the negative impact during downturn years.

Return on Assets (ROA)

The reported ROA trend aligned with the other profitability metrics, starting with a relatively stable performance at 10.70% in 2018, increasing to 11.63% in 2019, followed by a sharp fall into negative figures during 2020 (-8.10%) and 2021 (-4.79%). In 2022, ROA improved markedly to 8.31%. Adjusted ROA values reflect these same dynamics, with slightly larger negative deviations during the downturn and a marginally improved recovery in 2022.

Summary of Trends

The data depict a period of strong financial performance in 2018 and 2019, interrupted by severe deteriorations in profitability measures in 2020 and 2021, coinciding with a significant increase in financial leverage. These negative trends suggest operational difficulties possibly linked to external challenges impacting profitability and asset utilization. The subsequent recovery in 2022 across profitability and leverage ratios indicates improved operational efficiency and financial stability. The adjusted financial data closely track the reported figures, with adjustments slightly amplifying the magnitude of negative results during the downturn, but not altering the overall pattern of financial performance.

The data reveals notable fluctuations in the financial performance of the company over the five-year period ending December 31, 2022. Both reported and adjusted net income attributable to the company follow similar trends, indicating consistency between reported figures and adjustments made to income values.

Net Income

Reported net income increased from $2,413 million in 2018 to $2,698 million in 2019, reflecting nominal growth. However, in 2020 and 2021, the company experienced substantial losses of $1,685 million and $961 million, respectively. These losses reversed markedly in 2022, returning to a positive net income of $1,832 million. Adjusted net income mirrors this pattern closely, indicating that adjustments to income had limited impact on the overall income trend during this period.

Net Profit Margin

The reported net profit margin also shows a pattern consistent with net income. From a positive margin of 17.58% in 2018 and an improvement to 19.64% in 2019, the margin turned sharply negative in 2020 (-46.65%) and 2021 (-22.7%). This negative trend suggests operational or external challenges impacting profitability. In 2022, there was a substantial recovery to a profit margin of 44.57%, indicating a strong rebound in profitability. Adjusted net profit margin values closely resemble the reported margins, suggesting that adjustments did not significantly alter the profitability ratios.

Overall, the data illustrates a period of robust profitability prior to 2020, followed by a significant downturn during 2020 and 2021 with large net losses and negative profit margins. The subsequent recovery in 2022 to positive income and strong profit margins signifies a potentially significant turnaround in financial performance. The similarity between reported and adjusted figures indicates that deferred income tax adjustments had minimal effect on reported profitability metrics during these years.

The financial data reveals notable trends in both the asset base and asset utilization efficiency over the five-year period. Reported total assets showed a general decline from 22,547 million USD at the end of 2018 to 20,059 million USD by the end of 2021, before experiencing an increase to 22,039 million USD in 2022. The adjusted total assets mirrored this pattern, decreasing from 22,179 million USD in 2018 to 19,762 million USD in 2021, followed by a rebound to 21,908 million USD in 2022.

The asset turnover ratios, both reported and adjusted, exhibited a downward trend over the same period. Reported total asset turnover declined sharply from 0.61 in 2018 to a low of 0.17 in 2020, with a slight recovery to 0.21 in 2021 and a minor drop to 0.19 in 2022. Adjusted total asset turnover followed a similar trajectory, decreasing from 0.62 in 2018 to 0.18 in 2020, then improving to 0.21 in 2021, and reducing slightly to 0.19 in 2022.

Asset Base

The overall decline in total assets until 2021 potentially indicates asset disposals or impairments, possibly related to strategic shifts or external market conditions. The rebound in 2022 suggests renewed investment or asset acquisition activity.

Asset Utilization

The sharp decrease in asset turnover ratios in 2020 indicates a significant reduction in revenue generation relative to asset size, likely reflecting operational challenges or market disruptions during that period. The partial recovery in subsequent years implies an improvement in asset efficiency, although turnover remained below pre-2019 levels, highlighting a cautious recovery phase.

In summary, the data illustrates a period of contraction in asset holdings and utilization efficiency through 2020, with gradual recovery observable in the following years. The trends underscore the importance of monitoring asset productivity alongside asset base fluctuations to assess operational effectiveness comprehensively.

The analysis of the financial data reveals several notable trends in the company's asset base, equity position, and financial leverage over the five-year period.

Total assets

Both reported and adjusted total assets experienced a general decline from 2018 through 2021, decreasing from approximately 22.5 billion US dollars to just under 20 billion US dollars. However, in 2022, total assets rebounded closer to their initial levels, reaching over 22 billion US dollars. The adjustments to reported assets resulted in slightly lower values each year, but the trends were consistent between reported and adjusted figures.

Stockholders’ equity

The stockholders’ equity, both reported and adjusted, showed a pronounced downward trend from 2018 to 2021. The reported equity decreased from roughly 5.7 billion US dollars in 2018 to under 2 billion US dollars in 2021. The adjusted equity mirrored this trajectory, declining from about 5.5 billion to below 1.9 billion US dollars. In 2022, there was a marked recovery in equity values, rising to approximately 3.9 billion US dollars in both reported and adjusted terms. This recovery, however, did not fully restore equity to the levels seen at the beginning of the period.

Financial leverage

Financial leverage exhibited a significant increase from 2018 through 2021, indicating a rising level of debt relative to equity. Reported leverage nearly tripled, escalating from just under 4.0 to over 10 by 2021, while adjusted leverage rose similarly, surpassing 10.5 in 2021. In 2022, there was a notable reduction in leverage, falling back to approximately 5.6 in the adjusted figures and slightly higher in reported numbers. Despite this reduction, leverage in 2022 remained considerably elevated compared to the start of the period.

Overall, the data indicate that the company underwent a period of consolidation or asset reduction from 2018 through 2021, accompanied by a substantial decrease in equity and a sharp increase in financial leverage, suggesting heightened risk or increased borrowing relative to equity. The partial reversal of these trends in 2022, with recovery in assets and equity alongside a decrease in leverage, may imply efforts to strengthen the balance sheet and reduce financial risk.

Net Income Trends

The reported net income attributable to the company showed a positive trend from 2018 to 2019, increasing from $2,413 million to $2,698 million. However, there was a significant decline starting in 2020, with a reported loss of $1,685 million in 2020 and a further loss of $961 million in 2021. In 2022, the company returned to profitability with a reported net income of $1,832 million. The adjusted net income figures followed a similar pattern, slightly higher or lower than the reported figures, confirming the overall trend of initial growth, sharp decline, and subsequent recovery.

Equity Trends

Reported total stockholders’ equity decreased steadily from $5,684 million in 2018 to $1,996 million in 2021, reflecting a substantial decline over the four-year period. This downward trend reversed in 2022, with equity rising to $3,881 million. Adjusted total stockholders’ equity mirrored this pattern, declining consistently from 2018 through 2021 and then increasing in 2022, which suggests a recovery in the company’s financial position after the trough in 2021.

Return on Equity (ROE) Analysis

The reported ROE exhibited strong performance in 2018 and 2019, with values of 42.45% and 52.01%, respectively. A marked deterioration occurred in 2020 and 2021, with negative returns of -56.68% and -48.15%, indicating significant losses relative to equity. In 2022, the ROE rebounded to 47.2%, approaching levels seen before the decline. Adjusted ROE values followed a parallel course, confirming the reported figures and illustrating a severe contraction in profitability during 2020-2021 followed by a substantial recovery in 2022.

Overall Insights

The data indicates the company experienced a strong financial performance in 2018 and 2019, followed by a pronounced downturn in 2020 and 2021 as reflected by negative net incomes, reduced equity, and negative returns on equity. This period likely corresponds to adverse economic conditions or company-specific challenges. The year 2022 shows a clear recovery across all key financial metrics, with positive net income, increased equity, and restored profitability levels, suggesting a successful turnaround or improvement in operational performance.

The analysis of financial data from 2018 through 2022 reveals notable fluctuations in the company's profitability, asset base, and returns on assets. The reported net income attributable to the company demonstrated a positive trend in 2018 and 2019, with values increasing from 2,413 million USD to 2,698 million USD. However, a sharp reversal occurred in 2020 and 2021, with significant reported net losses amounting to -1,685 million USD and -961 million USD, respectively. In 2022, there was a recovery to positive net income at 1,832 million USD.

The adjusted net income followed a similar pattern, with slight variations. Starting at 2,526 million USD in 2018, it peaked at 2,855 million USD in 2019, then declined drastically to losses in 2020 (-1,717 million USD) and 2021 (-1,006 million USD), before recovering to nearly the same level as reported net income in 2022 (1,830 million USD). This parallel movement between reported and adjusted figures suggests that adjustments had a limited impact on overall trends in profitability during these years.

Total assets showed a gradual decline from 2018 through 2021, with reported total assets decreasing from 22,547 million USD in 2018 to a low of 20,059 million USD in 2021. In 2022, reported assets rebounded to 22,039 million USD. Adjusted total assets followed this trend closely, with values ranging from 22,179 million USD in 2018 down to 19,762 million USD in 2021 and then increasing again to 21,908 million USD in 2022. The decline over these years may reflect asset disposals, impairment, or reduced capital expenditure, while the recovery in 2022 points toward possibly renewed investment or asset appreciation.

The reported return on assets (ROA) echoes the income trends, starting at 10.7% in 2018 and increasing to 11.63% in 2019. It then deteriorated significantly to negative returns of -8.1% in 2020 and -4.79% in 2021, before improving again to 8.31% in 2022. The adjusted ROA data closely mirror this pattern with slightly higher peaks and deeper troughs, ranging from 11.39% in 2018 and 12.46% in 2019 to -8.38% in 2020 and -5.09% in 2021, followed by a recovery to 8.35% in 2022. This indicates that the company's operational efficiency and asset utilization were substantially impacted during 2020 and 2021 but began to normalize in 2022.

In summary, the company exhibited strong financial performance in 2018 and 2019, experienced significant losses and asset base contraction in 2020 and 2021, and showed recovery signs in 2022. Both reported and adjusted metrics followed similar trajectories, indicating that adjustments to income and assets did not significantly alter the underlying financial trends over this period.