Light & Wonder Inc (LNW)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.94	4.93	4.84	5.27	5.06	5.27	5.58	5.56	5.28	6.39	5.22	5.60	5.80	5.67	3.79	3.31	3.30	3.71	4.48	5.11
DSO	days	73.96	74.10	75.47	69.29	72.17	69.23	65.47	65.69	69.11	57.14	69.93	65.14	62.92	64.35	96.20	110.19	110.65	98.42	81.41	71.49

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.94
= 73.96

The days of sales outstanding (DSO) for Light & Wonder Inc have shown fluctuations over the periods analyzed. The DSO was at its lowest on September 30, 2021, at 64.35 days, indicating that on average, it took the company approximately 64 days to collect its accounts receivable. This suggests efficient management of receivables during that period.

However, the DSO increased to its highest level on December 31, 2020, at 110.65 days, signifying a significant extension in the collection period, which could potentially indicate issues with credit policies or collection processes.

Overall, there appears to be a general trend of improvement in the DSO over the last few periods, with decreasing values observed from December 31, 2021, to September 30, 2024, indicating a more efficient collection of accounts receivable. This trend suggests that Light & Wonder Inc has been working towards tightening its credit policies or enhancing its collection efforts, leading to a faster conversion of receivables into cash.

As DSO is a key indicator of a company's efficiency in collecting outstanding receivables, Light & Wonder Inc's management should continue to monitor and strive for lower DSO figures to improve cash flow and overall financial performance.