Light & Wonder Inc (LNW)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.04 | 4.48 | 4.84 | 3.71 | 4.74 | |
| DSO | days | 72.46 | 81.49 | 75.35 | 98.36 | 77.00 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.04
= 72.46
Based on the data provided for Light & Wonder Inc's Days Sales Outstanding (DSO) over the past five years, there has been a decreasing trend in the time it takes the company to collect its accounts receivable. DSO has decreased from 81.05 days in 2019 to 63.64 days in 2023, indicating that the company has been more efficient in collecting payments from customers.
A lower DSO is generally seen as a positive indicator, as it suggests that the company is able to convert its accounts receivable into cash more quickly. This could be attributed to improvements in the company's credit control processes, better customer payment terms, or more effective accounts receivable management.
Overall, the declining trend in DSO for Light & Wonder Inc over the past five years reflects positively on the company's financial health and efficiency in managing its working capital.
Peer comparison
Dec 31, 2023