Light & Wonder Inc (LNW)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		6.32	6.10	6.11	6.41	6.85	7.20	7.58	8.78	10.04	9.30	5.35	4.81	8.60	5.38	6.51	7.55	8.53	8.15	10.07	10.53
DOH	days	57.73	59.80	59.69	56.97	53.28	50.66	48.14	41.58	36.35	39.23	68.18	75.86	42.46	67.89	56.06	48.35	42.78	44.77	36.25	34.67

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.32
= 57.73

Days of Inventory on Hand (DOH) is a metric used to evaluate how efficiently a company manages its inventory by measuring the average number of days it takes for a company to sell its inventory. A lower DOH indicates that inventory is being sold more quickly, which is generally more favorable.

Analysis of Light & Wonder Inc's DOH over the past eight quarters shows some fluctuations in the company's inventory management efficiency. In Q4 2023, the DOH decreased to 74.09 days from 79.23 days in Q3 2023, which is a positive sign as it suggests that the company was able to sell its inventory more quickly during this period.

Looking at the trend over the past two years, there was a significant increase in DOH in Q3 2022 (123.91 days) compared to the previous quarters. However, since then, Light & Wonder Inc has been able to bring down its DOH, showing a consistent improvement in inventory management efficiency.

It is important for Light & Wonder Inc to monitor its inventory levels closely to ensure that excessive inventory does not tie up capital and lead to potential obsolescence or storage costs. By maintaining a balance between holding enough inventory to meet demand and avoiding excess inventory, the company can optimize its working capital and improve overall profitability.