Las Vegas Sands Corp. (NYSE:LVS)

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Las Vegas Sands Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Change in valuation allowance	-15.80%	-13.10%	-9.80%	2.70%	4.50%
Foreign and U.S. tax rate differential	-9.00%	-6.70%	-6.70%	-5.60%	-6.50%
Tax exempt loss of foreign subsidiary	-4.50%	-0.60%	-2.10%	-8.00%	-8.30%
Other, net	-2.80%	-0.30%	-0.70%	2.30%	0.60%
Effective tax rate	-11.10%	0.30%	1.70%	12.40%	11.30%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The effective income tax rate exhibited a significant downward trajectory over the five-year period, transitioning from 11.30% in 2018 to a negative 11.10% by 2022. While the statutory federal income tax rate remained constant at 21.00%, the variance between the statutory and effective rates widened substantially, driven primarily by valuation allowances and international tax differentials.

Valuation Allowance Trends: A pivotal shift occurred in the change in valuation allowance, which moved from increasing the effective tax rate in 2018 (4.50%) and 2019 (2.70%) to providing substantial reductions from 2020 onward. This negative impact accelerated annually, reaching -9.80% in 2020, -13.10% in 2021, and peaking at -15.80% in 2022, serving as a primary driver for the overall decline in the effective tax rate.
Foreign and U.S. Tax Rate Differentials: The differential between foreign and U.S. tax rates exerted a consistent downward pressure on the effective tax rate throughout the period. This reduction ranged from -5.60% to -6.70% between 2018 and 2021, before expanding to -9.00% in 2022, indicating an increasing tax advantage derived from foreign operations relative to the U.S. statutory rate.
Foreign Subsidiary Tax-Exempt Losses: Tax-exempt losses from foreign subsidiaries consistently lowered the effective tax rate, although the magnitude of this impact was volatile. The reduction was most pronounced in 2018 and 2019 at -8.30% and -8.00% respectively, narrowed significantly to -0.60% in 2021, and moderately increased to -4.50% in 2022.
Other Reconciling Items: Miscellaneous adjustments categorized as other, net, had a marginal impact in the early years, providing slight increases in 2018 (0.60%) and 2019 (2.30%). However, these items shifted to a negative impact from 2020 through 2022, ending at -2.80% in the final year of the analysis.

The convergence of widening foreign tax differentials, increasing negative valuation allowances, and tax-exempt foreign losses resulted in a complete erosion of the tax burden by 2021, ultimately leading to a negative effective tax rate in 2022.

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Las Vegas Sands Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
U.S. foreign tax credit carryforwards	3,720)	4,815)	4,812)	4,791)	4,919)
Net operating loss carryforwards	481)	539)	466)	283)	271)
Stock-based compensation	17)	16)	16)	15)	13)
Accrued expenses	9)	21)	10)	23)	16)
Provision for credit losses	1)	14)	14)	14)	16)
Interest expense carryforward	—)	18)	—)	—)	—)
Deferred gain on mall sale transactions	—)	11)	12)	13)	14)
Pre-opening expenses	—)	6)	7)	9)	11)
State deferred items	—)	—)	—)	—)	10)
Other	14)	2)	—)	1)	1)
Deferred tax assets, gross	4,242)	5,442)	5,337)	5,149)	5,271)
Valuation allowances	(4,083)	(5,034)	(4,922)	(4,786)	(4,769)
Deferred tax assets	159)	408)	415)	363)	502)
Property and equipment	(174)	(273)	(274)	(251)	(245)
Prepaid expenses	(2)	(5)	(4)	(5)	(3)
Other	(4)	(6)	(7)	(8)	(77)
Deferred tax liabilities	(180)	(284)	(285)	(264)	(325)
Deferred tax assets (liabilities), net	(21)	124)	130)	99)	177)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial trajectory over the five-year period ending December 31, 2022, reveals a transition in the net deferred tax position from a net asset to a net liability. The net deferred tax asset (liability) balance decreased from 177 million USD in 2018 to a net liability of 21 million USD by the end of 2022.

Gross Deferred Tax Assets and Valuation Allowances: Gross deferred tax assets were heavily concentrated in U.S. foreign tax credit carryforwards, which remained relatively stable around 4.8 billion USD between 2019 and 2021 before experiencing a notable decline to 3.72 billion USD in 2022. A substantial valuation allowance was maintained throughout the period, consistently offsetting the majority of gross assets. This allowance decreased from 4.77 billion USD in 2018 to 4.08 billion USD in 2022, mirroring the overall decline in gross asset balances.
Net Operating Loss (NOL) Carryforwards: A growth trend is observed in net operating loss carryforwards, which rose from 271 million USD in 2018 to a peak of 539 million USD in 2021. A slight moderation occurred in 2022, with the balance ending at 481 million USD, indicating an increase in available tax deductions relative to the 2018 baseline.
Deferred Tax Liabilities: Deferred tax liabilities were primarily driven by property and equipment, which consistently represented the largest component of the liability. Total deferred tax liabilities declined from 325 million USD in 2018 to 180 million USD in 2022. The component related to property and equipment specifically decreased from 245 million USD to 174 million USD during this timeframe.
Other Asset Components: Minor components of deferred tax assets, including stock-based compensation and accrued expenses, remained relatively immaterial. Stock-based compensation showed a slight upward trend, increasing from 13 million USD in 2018 to 17 million USD in 2022, while the provision for credit losses effectively disappeared by 2022, dropping from 16 million USD in 2018 to 1 million USD.

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Las Vegas Sands Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Deferred tax assets	131)	297)	318)	282)	368)
	Deferred tax liabilities	152)	173)	188)	183)	191)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Analysis of the deferred tax accounts reveals a contraction in both asset and liability balances over the five-year period ending December 31, 2022, with a notable shift in the net tax position during the final year.

Deferred Tax Assets: Deferred tax assets exhibited significant volatility, starting at 368 million USD in 2018 and ending at 131 million USD in 2022. After a decline in 2019 and a moderate recovery in 2020, the balance experienced a sharp reduction of approximately 56% between 2021 and 2022, reaching the lowest level recorded in the period.
Deferred Tax Liabilities: Deferred tax liabilities remained relatively stable compared to assets, characterized by a gradual downward trend. The balance decreased from 191 million USD in 2018 to 152 million USD in 2022. This steady decline suggests a progressive resolution of temporary differences that had previously created taxable obligations.
Net Deferred Tax Position: The relationship between deferred tax assets and liabilities underwent a fundamental transition. Between 2018 and 2021, the company consistently maintained a net deferred tax asset position. However, by December 31, 2022, the deferred tax liabilities exceeded the assets for the first time in the analyzed period, resulting in a net deferred tax liability position of 21 million USD.

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Las Vegas Sands Corp., Financial Data: Reported vs. Adjusted

Las Vegas Sands Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	22,039)	20,059)	20,807)	23,199)	22,547)
Less: Noncurrent deferred tax assets, net	131)	297)	318)	282)	368)
Total assets (adjusted)	21,908)	19,762)	20,489)	22,917)	22,179)
Adjustment to Total Liabilities
Total liabilities (as reported)	18,383)	17,811)	17,269)	16,692)	15,802)
Less: Noncurrent deferred tax liabilities, net	152)	173)	188)	183)	191)
Total liabilities (adjusted)	18,231)	17,638)	17,081)	16,509)	15,611)
Adjustment to Total Las Vegas Sands Corp. Stockholders’ Equity
Total Las Vegas Sands Corp. stockholders’ equity (as reported)	3,881)	1,996)	2,973)	5,187)	5,684)
Less: Net deferred tax assets (liabilities)	(21)	124)	130)	99)	177)
Total Las Vegas Sands Corp. stockholders’ equity (adjusted)	3,902)	1,872)	2,843)	5,088)	5,507)
Adjustment to Net Income (loss) Attributable To Las Vegas Sands Corp.
Net income (loss) attributable to Las Vegas Sands Corp. (as reported)	1,832)	(961)	(1,685)	2,698)	2,413)
Add: Deferred income tax expense (benefit)	(2)	(45)	(32)	157)	113)
Net income (loss) attributable to Las Vegas Sands Corp. (adjusted)	1,830)	(1,006)	(1,717)	2,855)	2,526)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

A comprehensive analysis of the financial position between 2018 and 2022 reveals a period of significant volatility, characterized by a sharp contraction in equity and net income during 2020 and 2021, followed by a recovery in 2022. The removal of deferred taxes consistently alters the reported financial metrics, typically reducing both total assets and total liabilities, which indicates a net deferred tax asset position for most of the observed period.

Impact on Balance Sheet Composition: Adjusted total assets remain consistently lower than reported total assets across all five years, with the largest discrepancy occurring in 2018 at 368 million US dollars. Similarly, adjusted total liabilities are lower than reported liabilities, showing a steady decrease in the magnitude of the adjustment from 191 million US dollars in 2018 to 152 million US dollars in 2022. This suggests that the removal of deferred tax accounts reduces the overall scale of the balance sheet.
Equity Trends and Adjustments: Stockholders' equity experienced a severe decline, falling from a reported 5,684 million US dollars in 2018 to a low of 1,996 million US dollars in 2021. For the majority of the period, adjusted equity was lower than reported equity, reflecting the net impact of removing deferred tax assets. However, by 2022, a reversal occurred where adjusted equity (3,902 million US dollars) exceeded reported equity (3,881 million US dollars), indicating a shift in the net deferred tax position.
Net Income and Loss Volatility: The transition from profitability to net losses in 2020 and 2021 is evident, with reported losses of 1,685 million US dollars and 961 million US dollars respectively. The adjustments for deferred taxes amplified these losses, resulting in adjusted net losses of 1,717 million US dollars and 1,006 million US dollars. Conversely, in the growth years of 2018 and 2019, the removal of deferred taxes resulted in adjusted net incomes that were higher than the reported figures, suggesting that tax adjustments provided a positive variance during periods of profitability.
Asset and Liability Trajectories: Reported total assets peaked in 2019 at 23,199 million US dollars before declining to 20,059 million US dollars in 2021 and recovering to 22,039 million US dollars in 2022. In contrast, reported total liabilities exhibited a continuous upward trajectory throughout the entire period, increasing from 15,802 million US dollars in 2018 to 18,383 million US dollars in 2022, contributing to the compression of equity during the mid-period downturn.

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Las Vegas Sands Corp., Financial Ratios: Reported vs. Adjusted

Las Vegas Sands Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	44.57%	-22.70%	-46.65%	19.64%	17.58%
Adjusted net profit margin	44.53%	-23.76%	-47.54%	20.78%	18.40%
Total Asset Turnover
Reported total asset turnover	0.19	0.21	0.17	0.59	0.61
Adjusted total asset turnover	0.19	0.21	0.18	0.60	0.62
Financial Leverage
Reported financial leverage	5.68	10.05	7.00	4.47	3.97
Adjusted financial leverage	5.61	10.56	7.21	4.50	4.03
Return on Equity (ROE)
Reported ROE	47.20%	-48.15%	-56.68%	52.01%	42.45%
Adjusted ROE	46.90%	-53.74%	-60.39%	56.11%	45.87%
Return on Assets (ROA)
Reported ROA	8.31%	-4.79%	-8.10%	11.63%	10.70%
Adjusted ROA	8.35%	-5.09%	-8.38%	12.46%	11.39%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

An analysis of financial performance from 2018 to 2022 reveals significant volatility, characterized by a severe downturn in 2020 and 2021 followed by a substantial recovery in 2022. The removal of deferred taxes to calculate adjusted ratios generally amplifies the magnitude of both gains and losses, suggesting that deferred tax accounting served as a stabilizing factor in reported figures during periods of financial stress.

Profitability and Return Metrics: Net profit margins experienced a dramatic shift, falling from a peak reported margin of 19.64% in 2019 to -46.65% in 2020. A sharp recovery is evident by 2022, with the reported margin reaching 44.57%. Adjusted net profit margins consistently showed deeper losses during the downturn (reaching -47.54% in 2020) and higher gains during the growth years of 2018 and 2019, indicating that deferred tax adjustments heighten the sensitivity of profitability metrics.; Return on Equity (ROE) and Return on Assets (ROA) followed a similar trajectory of extreme fluctuation. Reported ROE plummeted from 52.01% in 2019 to -56.68% in 2020 before rebounding to 47.20% in 2022. Adjusted ROE figures were more volatile, showing higher peaks in 2018-2019 and deeper troughs in 2020-2021 compared to reported values. ROA trends mirrored this pattern, with adjusted ROA consistently showing a more pronounced variance from the baseline than reported ROA.
Asset Efficiency and Operational Turnover: Total asset turnover exhibited a sustained decline in efficiency. Reported ratios fell from 0.61 in 2018 to a low of 0.17 in 2020, with only a marginal recovery to 0.19 by 2022. The variance between reported and adjusted asset turnover is negligible, indicating that deferred tax adjustments have little to no impact on the measurement of operational asset productivity.
Financial Leverage and Capital Structure: Financial leverage increased sharply between 2018 and 2021, with the reported ratio rising from 3.97 to a peak of 10.05. This suggests a significant increase in reliance on debt or a reduction in equity during the crisis period. Adjusted financial leverage followed this trend closely, peaking at 10.56 in 2021. By 2022, leverage moderated significantly to a reported ratio of 5.68, reflecting a deleveraging process or a restoration of the equity base.

In summary, the adjusted ratios demonstrate that the exclusion of deferred taxes results in more extreme performance indicators. This divergence was most prominent during the loss-making years of 2020 and 2021, where adjusted metrics reported more severe declines in ROE, ROA, and profit margins than the standard reported figures.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Las Vegas Sands Corp.	1,832)	(961)	(1,685)	2,698)	2,413)
Net revenues	4,110)	4,234)	3,612)	13,739)	13,729)
Profitability Ratio
Net profit margin¹	44.57%	-22.70%	-46.65%	19.64%	17.58%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Las Vegas Sands Corp.	1,830)	(1,006)	(1,717)	2,855)	2,526)
Net revenues	4,110)	4,234)	3,612)	13,739)	13,729)
Profitability Ratio
Adjusted net profit margin²	44.53%	-23.76%	-47.54%	20.78%	18.40%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Las Vegas Sands Corp. ÷ Net revenues
= 100 × 1,832 ÷ 4,110 = 44.57%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Las Vegas Sands Corp. ÷ Net revenues
= 100 × 1,830 ÷ 4,110 = 44.53%

An analysis of the financial performance between 2018 and 2022 reveals a period of extreme volatility in profitability, characterized by steady initial growth, a severe contraction, and a subsequent sharp recovery. The adjusted net profit margin closely tracks the reported net profit margin, though it provides a normalized perspective on the entity's operational efficiency by removing non-recurring items.

Profitability Growth (2018–2019): During the initial two-year period, a positive trajectory is observed. Adjusted net income rose from 2,526 million US$ in 2018 to 2,855 million US$ in 2019. This growth is reflected in the adjusted net profit margin, which expanded from 18.40% to 20.78%, indicating an increase in the efficiency of converting revenue into adjusted profit.
Operational Contraction (2020–2021): A significant downturn occurred in 2020, with adjusted net income falling to a loss of 1,717 million US$ and the adjusted net profit margin plummeting to -47.54%. While 2021 showed a reduction in losses, with adjusted net income improving to -1,006 million US$ and the margin recovering to -23.76%, the company continued to operate with negative profitability during this window.
Recovery and Margin Expansion (2022): A robust recovery is evident in 2022, as adjusted net income returned to positive territory at 1,830 million US$. Notably, the adjusted net profit margin surged to 44.53%, a figure that significantly exceeds the pre-contraction margins of 2018 and 2019, suggesting a substantial improvement in the relationship between adjusted earnings and total revenue.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net revenues	4,110)	4,234)	3,612)	13,739)	13,729)
Total assets	22,039)	20,059)	20,807)	23,199)	22,547)
Activity Ratio
Total asset turnover¹	0.19	0.21	0.17	0.59	0.61
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues	4,110)	4,234)	3,612)	13,739)	13,729)
Adjusted total assets	21,908)	19,762)	20,489)	22,917)	22,179)
Activity Ratio
Adjusted total asset turnover²	0.19	0.21	0.18	0.60	0.62

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 4,110 ÷ 22,039 = 0.19

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 4,110 ÷ 21,908 = 0.19

An analysis of asset utilization from 2018 to 2022 reveals a significant shift in operational efficiency. The company maintained a consistent level of asset productivity during the initial two-year period, followed by a sharp decline in 2020 from which a full recovery to baseline levels has not yet materialized.

Asset Base Fluctuations: Reported total assets peaked in 2019 at 23,199 million USD before experiencing a contraction that reached a minimum of 20,059 million USD in 2021. A recovery trend is observed in 2022, with total assets increasing to 22,039 million USD. Adjusted total assets followed a nearly identical trajectory, mirroring the reported values with minimal variance.
Asset Turnover Performance: The adjusted total asset turnover ratio demonstrates a precipitous decline between 2019 and 2020, falling from 0.60 to 0.18. This indicates a substantial reduction in the revenue generated per unit of asset. Although a slight increase to 0.21 was recorded in 2021, the ratio declined again to 0.19 by the end of 2022, suggesting that asset productivity remained severely impaired relative to the 2018-2019 period.
Analysis of Adjusted vs. Reported Metrics: A comparison between reported and adjusted figures shows a high degree of correlation. The difference between the reported total asset turnover and the adjusted total asset turnover is negligible, typically varying by only 0.01 to 0.02. This implies that the adjustments made to the asset base have no material impact on the overall interpretation of the company's asset efficiency trends.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	22,039)	20,059)	20,807)	23,199)	22,547)
Total Las Vegas Sands Corp. stockholders’ equity	3,881)	1,996)	2,973)	5,187)	5,684)
Solvency Ratio
Financial leverage¹	5.68	10.05	7.00	4.47	3.97
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	21,908)	19,762)	20,489)	22,917)	22,179)
Adjusted total Las Vegas Sands Corp. stockholders’ equity	3,902)	1,872)	2,843)	5,088)	5,507)
Solvency Ratio
Adjusted financial leverage²	5.61	10.56	7.21	4.50	4.03

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Las Vegas Sands Corp. stockholders’ equity
= 22,039 ÷ 3,881 = 5.68

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Las Vegas Sands Corp. stockholders’ equity
= 21,908 ÷ 3,902 = 5.61

The financial position from 2018 to 2022 is characterized by a period of significant volatility in capital structure, specifically regarding the relationship between total assets and stockholders' equity. While total assets remained relatively stable, experiencing a peak in 2019 and a subsequent trough in 2021, stockholders' equity underwent a severe contraction during the same period, which directly precipitated a surge in financial leverage.

Equity and Asset Trends: Reported total assets fluctuated between a high of 23,199 million USD in 2019 and a low of 20,059 million USD in 2021. In contrast, stockholders' equity declined sharply from 5,684 million USD in 2018 to a minimum of 1,996 million USD in 2021. This divergence indicates that the increase in leverage was driven primarily by the erosion of the equity base rather than a substantial expansion of the asset base.
Analysis of Reported Financial Leverage: The reported financial leverage ratio exhibited a steep upward trajectory, rising from 3.97 in 2018 to a peak of 10.05 in 2021. This represents a significant increase in the company's reliance on debt relative to equity. However, a corrective trend emerged in 2022, with the ratio decreasing to 5.68, coinciding with a recovery in stockholders' equity to 3,881 million USD.
Adjusted Financial Leverage and Variance: Adjusted financial leverage consistently mirrored the trend of the reported ratio but remained slightly higher between 2018 and 2021, peaking at 10.56 in 2021. This suggests that the adjustments made to assets and equity marginally intensified the leverage profile during the period of equity decline. By 2022, the adjusted financial leverage shifted to 5.61, falling slightly below the reported ratio of 5.68, indicating a change in the impact of the adjustments as the balance sheet stabilized.
Comparative Stability and Recovery: The data reveals a cyclical pattern of instability. The period between 2020 and 2021 saw leverage ratios nearly triple from 2018 levels. The recovery observed in 2022 suggests a re-strengthening of the equity position, which effectively reduced the adjusted financial leverage from its critical peak of 10.56 back toward a more sustainable level of 5.61.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Las Vegas Sands Corp.	1,832)	(961)	(1,685)	2,698)	2,413)
Total Las Vegas Sands Corp. stockholders’ equity	3,881)	1,996)	2,973)	5,187)	5,684)
Profitability Ratio
ROE¹	47.20%	-48.15%	-56.68%	52.01%	42.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Las Vegas Sands Corp.	1,830)	(1,006)	(1,717)	2,855)	2,526)
Adjusted total Las Vegas Sands Corp. stockholders’ equity	3,902)	1,872)	2,843)	5,088)	5,507)
Profitability Ratio
Adjusted ROE²	46.90%	-53.74%	-60.39%	56.11%	45.87%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income (loss) attributable to Las Vegas Sands Corp. ÷ Total Las Vegas Sands Corp. stockholders’ equity
= 100 × 1,832 ÷ 3,881 = 47.20%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Las Vegas Sands Corp. ÷ Adjusted total Las Vegas Sands Corp. stockholders’ equity
= 100 × 1,830 ÷ 3,902 = 46.90%

The financial trajectory from 2018 to 2022 is characterized by extreme volatility, defined by a period of high profitability, a severe downturn resulting in substantial losses, and a subsequent recovery in the final year of the period.

Adjusted Return on Equity (ROE) Trends: Adjusted ROE experienced significant swings, rising from 45.87% in 2018 to a peak of 56.11% in 2019. A sharp reversal occurred in 2020, with the ratio falling to -60.39%, followed by a slight moderation to -53.74% in 2021. By 2022, the adjusted ROE returned to a positive position of 46.90%, nearly mirroring the levels seen at the start of the analyzed period.
Net Income and Equity Dynamics: Adjusted net income transitioned from a high of 2,855 million in 2019 to a deficit of 1,717 million in 2020 and 1,006 million in 2021. This loss of profitability coincided with a drastic contraction in adjusted stockholders' equity, which eroded from 5,088 million in 2019 to a low of 1,872 million in 2021. A recovery was observed in 2022, with adjusted net income returning to 1,830 million and equity rebounding to 3,902 million.
Analysis of Reported versus Adjusted Divergence: The adjusted figures generally amplified the reported financial outcomes. During the growth phase in 2019, adjusted ROE was higher than reported ROE. Conversely, during the loss-making years of 2020 and 2021, the adjusted ROE reflected deeper negative percentages than the reported ROE. By 2022, the variance between reported and adjusted figures diminished, with both ROE metrics converging around the 47% mark.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Las Vegas Sands Corp.	1,832)	(961)	(1,685)	2,698)	2,413)
Total assets	22,039)	20,059)	20,807)	23,199)	22,547)
Profitability Ratio
ROA¹	8.31%	-4.79%	-8.10%	11.63%	10.70%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Las Vegas Sands Corp.	1,830)	(1,006)	(1,717)	2,855)	2,526)
Adjusted total assets	21,908)	19,762)	20,489)	22,917)	22,179)
Profitability Ratio
Adjusted ROA²	8.35%	-5.09%	-8.38%	12.46%	11.39%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income (loss) attributable to Las Vegas Sands Corp. ÷ Total assets
= 100 × 1,832 ÷ 22,039 = 8.31%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Las Vegas Sands Corp. ÷ Adjusted total assets
= 100 × 1,830 ÷ 21,908 = 8.35%

The financial performance between 2018 and 2022 is characterized by significant volatility in earnings and a subsequent impact on asset efficiency. A period of initial growth in 2018 and 2019 was followed by a severe contraction in 2020, succeeded by a multi-year recovery phase that returned the company to profitability by 2022.

Net Income Trends: Reported net income increased from US$ 2,413 million in 2018 to a peak of US$ 2,698 million in 2019. A sharp reversal occurred in 2020, resulting in a net loss of US$ 1,685 million. This deficit narrowed to US$ 961 million in 2021 before the company returned to a positive net income of US$ 1,832 million in 2022. Adjusted net income followed a similar trajectory, peaking at US$ 2,855 million in 2019 and reaching its lowest point of negative US$ 1,717 million in 2020.
Asset Base Dynamics: Reported total assets peaked in 2019 at US$ 23,199 million. A downward trend was observed between 2020 and 2021, with assets reaching a low of US$ 20,059 million. By December 31, 2022, the asset base recovered to US$ 22,039 million. Adjusted total assets mirrored this movement, exhibiting a contraction during the period of net losses and a subsequent rebound in the final year of the analysis.
Return on Assets (ROA) Performance: The reported ROA experienced a significant swing, rising from 10.70% in 2018 to 11.63% in 2019, before dropping sharply to -8.10% in 2020. A gradual recovery is evident in the subsequent years, moving to -4.79% in 2021 and returning to a positive 8.31% in 2022. Adjusted ROA consistently remained slightly higher than reported ROA during growth years, peaking at 12.46% in 2019, but also reflected deeper losses during the 2020 trough at -8.38%.

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