Light & Wonder Inc (LNW)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.95 | 5.04 | 4.48 | 4.84 | 3.71 | |
| DSO | days | 73.81 | 72.46 | 81.49 | 75.35 | 98.36 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.95
= 73.81
Based on the data provided for Light & Wonder Inc's days of sales outstanding (DSO) over the past five years, there has been a consistent trend of improvement in the company's collection efficiency.
As of December 31, 2020, the DSO was reported at 98.36 days, indicating that on average, it took the company around 98 days to collect payment from its customers. However, this metric showed a positive trend over the following years.
By December 31, 2021, the DSO had decreased to 75.35 days, reflecting a more efficient collection process compared to the previous year. This trend continued in the subsequent years, with the DSO further decreasing to 81.49 days by the end of 2022, 72.46 days by the end of 2023, and 73.81 days by the end of 2024.
The decreasing trend in DSO implies that Light & Wonder Inc has been able to collect payments from its customers more quickly, which is a positive indicator of the company's cash flow management and liquidity. A lower DSO typically suggests that the company is more effective in managing its accounts receivable and converting sales into cash.
Overall, the improving trend in DSO for Light & Wonder Inc over the past five years is a positive sign, indicating enhanced efficiency in the company's collections process and potentially better working capital management.
Peer comparison
Dec 31, 2024