Las Vegas Sands Corp. (NYSE:LVS)

The financial performance indicators of the company exhibit notable fluctuations over the five-year period under review.

Return on Assets (ROA)

The ROA demonstrated positive values in 2018 and 2019, increasing from 10.7% to 11.63%, indicating improved efficiency in asset usage for generating earnings. However, there was a significant reversal in 2020 and 2021, with negative returns of -8.1% and -4.79% respectively, pointing to challenges in asset productivity. The measurement recovered in 2022 to 8.31%, showing signs of reestablished asset effectiveness, though it remained below the pre-pandemic peak.

Financial Leverage

The financial leverage ratio increased consistently from 3.97 in 2018 to 10.05 in 2021, suggesting an escalating reliance on debt financing during this period. This trend reflects a growing use of borrowed funds to support company operations or investments, which may have contributed to heightened financial risk. In 2022, the leverage ratio decreased to 5.68, indicating a partial reduction in debt levels or an increase in equity base, potentially reflecting a strategic move towards deleveraging following the peak in 2021.

Return on Equity (ROE)

The ROE showed a strong upward trend initially, climbing from 42.45% in 2018 to 52.01% in 2019, which corresponds with high profitability relative to shareholders' equity. However, this profitability sharply deteriorated in 2020 and 2021, with negative returns of -56.68% and -48.15%, revealing substantial losses or diminished returns to equity holders during these years. A significant recovery occurred in 2022, with the ROE rebounding to 47.2%, nearly reaching the 2018 level, suggesting a return to favorable financial performance for equity investors.

Overall, the period saw initial strong financial performance followed by severe declines coinciding with increased leverage, likely reflecting external economic challenges or internal operational difficulties. The restoration of positive return metrics and reduced leverage in 2022 indicate a recovery phase and improvement in financial stability and performance.

The financial data reveals significant fluctuations in key performance metrics over the five-year period. The net profit margin experienced a strong positive trend in 2018 and 2019, reaching 19.64%, before a sharp decline occurred in 2020, resulting in a substantial negative margin of -46.65%. This downward trend persisted into 2021, though with a slightly less negative figure of -22.7%. A notable recovery is observed in 2022, with the net profit margin rebounding to a robust 44.57%.

Asset turnover ratios demonstrate a declining pattern overall, starting at 0.61 in 2018 and gradually decreasing to 0.19 by 2022. The steepest drops are evident between 2019 and 2020, where the ratio falls from 0.59 to 0.17, indicating reduced efficiency in generating sales from assets during this period, with only minor improvements thereafter.

Financial leverage ratios increased markedly from 3.97 in 2018 to a peak of 10.05 in 2021, reflecting a rising reliance on debt or borrowed capital. However, there is a notable reduction in leverage in 2022, down to 5.68, suggesting a deleveraging effort or improved capital structure management.

The return on equity (ROE), paralleling the net profit margin trends, shows high positive returns in 2018 and 2019 at 42.45% and 52.01%, respectively. This was followed by severe negative returns in 2020 and 2021, plunging to -56.68% and -48.15%. The year 2022 sees a considerable recovery in ROE to 47.2%, indicating restored profitability and shareholder value generation.

Overall, the data indicates that the firm experienced a period of financial distress beginning in 2020, characterized by negative profitability and high leverage, accompanied by reduced asset efficiency. The partial recovery in 2022 suggests stabilization and improvement in operational performance and financial management.

Net Profit Margin

Significant drop in 2020 and 2021 to negative values, rapid recovery in 2022.

Asset Turnover

Gradual decline over the period, with the lowest point in 2020 and only slight improvement thereafter.

Financial Leverage

Continuous increase until 2021, followed by a reduction in 2022.

Return on Equity (ROE)

High positive returns in 2018-2019, drastic fall into negative territory in 2020-2021, significant rebound in 2022.

Tax Burden

The tax burden ratio remained relatively stable between 2018 and 2019, with values of 0.87 and 0.85 respectively. Data for 2020 and 2021 is missing, but there is a noticeable increase to 0.92 in 2022, suggesting a higher proportion of pre-tax income was retained after taxes in that year.

Interest Burden

This ratio showed a slight decrease from 0.86 in 2018 to 0.85 in 2019. Data for 2020 and 2021 is absent. The figure then drops more significantly to 0.74 in 2022, indicating a higher interest expense relative to EBIT in 2022 compared to prior years.

EBIT Margin

The EBIT margin exhibited volatility over the five-year period. It increased from 23.56% in 2018 to 27.08% in 2019, then sharply declined into negative territory, reaching -32.86% in 2020 and -8.15% in 2021. A dramatic recovery occurred in 2022 with the margin rising to a strong 65.4%, indicating improved operational profitability after a period of losses.

Asset Turnover

There was a consistent decline in asset turnover from 0.61 in 2018 to 0.59 in 2019, followed by a sharp drop to 0.17 in 2020. Slight increases to 0.21 in 2021 and a marginal decline to 0.19 in 2022 reflect reduced efficiency in generating sales from assets, possibly impacted by operational disruptions or asset base changes.

Financial Leverage

Financial leverage increased markedly from 3.97 in 2018 to 4.47 in 2019, escalating further to 7 in 2020 and peaking at 10.05 in 2021. In 2022, leverage declined to 5.68 but remained elevated compared to the early years. This indicates increased reliance on debt financing over most of the period, with some deleveraging occurring recently.

Return on Equity (ROE)

ROE followed a pattern similar to EBIT margin, rising from 42.45% in 2018 to 52.01% in 2019, then plunging into negative territory with -56.68% in 2020 and -48.15% in 2021. This downturn corresponds with operational challenges and possibly impaired profitability. A rebound to 47.2% was observed in 2022, signaling restoration of shareholder returns aligned with operational improvements.

Net Profit Margin

The net profit margin demonstrates notable volatility across the analyzed periods. From 2018 to 2019, a positive increase is observed, rising from 17.58% to 19.64%, indicating improved profitability. However, 2020 and 2021 show a significant downturn with values plunging to -46.65% and -22.7%, respectively, reflecting substantial losses. An impressive recovery occurs in 2022, with the margin rebounding sharply to 44.57%, suggesting a strong return to profitability.

Asset Turnover

Asset turnover exhibits a declining trend from 0.61 in 2018 to 0.59 in 2019, followed by a sharp drop to 0.17 in 2020. Subsequently, there is a slight increase to 0.21 in 2021, then a minor decrease to 0.19 in 2022. This pattern indicates reduced efficiency in generating revenue from assets, especially pronounced in 2020, with only partial recovery afterwards.

Return on Assets (ROA)

ROA trends align closely with net profit margin changes. The company posted returns of 10.7% and 11.63% in 2018 and 2019, respectively, which sharply declined to -8.1% in 2020 and -4.79% in 2021, indicating periods of loss. In 2022, ROA improves to 8.31%, reflecting regained profitability and better asset utilization compared to prior years. Nonetheless, the 2022 ROA remains below pre-2020 levels.

Tax Burden

The tax burden ratio exhibited a decrease from 0.87 in 2018 to 0.85 in 2019, reflecting a slight reduction in the effective tax rate relative to pre-tax income. Data for 2020 and 2021 are unavailable. In 2022, the tax burden rose to 0.92, indicating an increased proportion of earnings allocated to taxes.

Interest Burden

The interest burden ratio remained relatively stable at 0.86 in 2018 and 0.85 in 2019. Data for 2020 and 2021 are missing. By 2022, the ratio decreased to 0.74, suggesting a higher interest expense relative to earnings before interest and taxes, which may imply increased leverage or higher borrowing costs.

EBIT Margin

The EBIT margin showed a positive trend in 2018 and 2019, increasing from 23.56% to 27.08%. However, there was a significant downturn in 2020, where the margin dropped sharply to -32.86%, indicating substantial operational losses. In 2021, the negative margin persisted at -8.15%, though with partial recovery. In 2022, a strong rebound occurred as the EBIT margin surged to 65.4%, signaling a robust recovery in operating profitability.

Asset Turnover

Asset turnover demonstrated a declining trend from 0.61 in 2018 to 0.59 in 2019, followed by a sharper drop in 2020 to 0.17. Slight improvements were observed in 2021 (0.21), but this ratio fell back to 0.19 in 2022. This overall decline points to reduced efficiency in generating revenue from asset base over the period measured, possibly due to operational disruptions or asset base changes.

Return on Assets (ROA)

The return on assets was positive and stable in 2018 (10.7%) and 2019 (11.63%). It turned negative in 2020 (-8.1%) and 2021 (-4.79%), consistent with the decline in EBIT margin, reflecting losses and decreased asset profitability. By 2022, ROA recovered to 8.31%, indicating a return to profitable utilization of assets though not reaching pre-2019 levels.

Tax Burden

The tax burden ratio shows a decrease from 0.87 in 2018 to 0.85 in 2019, indicating a slight reduction in the tax impact on earnings. Data for 2020 and 2021 is missing, but there is a noticeable increase to 0.92 in 2022, suggesting a higher proportion of earnings retained after tax in that year.

Interest Burden

The interest burden ratio remains relatively stable at 0.86 in 2018 and 0.85 in 2019, indicating consistent interest expense relative to operating profit. Data for 2020 and 2021 is absent, but the ratio decreases to 0.74 in 2022, which may imply increased interest expenses or lower operating income before interest in that period.

EBIT Margin

The EBIT margin exhibits a significant negative trend during the period, starting from a positive 23.56% in 2018 and improving to 27.08% in 2019. However, there is a sharp decline to -32.86% in 2020, likely caused by extraordinary challenges. This negative trend continues in 2021 with a margin of -8.15%, followed by a strong recovery to 65.4% in 2022, indicating a substantial improvement in operating profitability.

Net Profit Margin

The net profit margin follows a similar pattern to EBIT margin, beginning at 17.58% in 2018 and increasing to 19.64% in 2019. The margin then sharply declines to -46.65% in 2020 and remains negative at -22.7% in 2021, reflecting significant net losses during these years. In 2022, there is a pronounced turnaround with a net profit margin of 44.57%, signaling a strong recovery in overall profitability.