Light & Wonder Inc (LNW)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.29	6.88	10.77	9.45	9.53
DOH	days	58.05	53.08	33.91	38.61	38.31

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.29
= 58.05

The days of inventory on hand (DOH) is a measure that indicates the average number of days a company holds its inventory before selling it. A higher DOH value suggests that the company is taking longer to turn its inventory into sales, which may tie up capital and increase storage costs. Conversely, a lower DOH value indicates a more efficient inventory management and quicker turnover.

Analyzing the trend of Light & Wonder Inc's DOH from 2019 to 2023, we observe fluctuations in the metric:
- In 2019, the company had a DOH of 69.36 days, which suggests a moderate amount of time taken to sell inventory.
- By 2020, the DOH decreased to 60.10 days, indicating an improvement in inventory turnover efficiency.
- However, in 2021, the DOH dropped significantly to 58.74 days, reflecting even better inventory management practices and faster inventory turnover.
- Subsequently, in 2022, the DOH increased to 79.63 days, highlighting a potential deterioration in inventory management efficiency.
- Lastly, in 2023, the DOH decreased to 74.09 days, suggesting a slight improvement but still higher than the levels seen in 2021 and 2020.

Overall, the company's DOH has experienced fluctuations over the past five years, with both improvements and deteriorations in inventory turnover efficiency. It is essential for Light & Wonder Inc to closely monitor its inventory levels and implement strategies to optimize inventory turnover to enhance liquidity and profitability.