Light & Wonder Inc (LNW)

Days of sales outstanding (DSO)

		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
Receivables turnover		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	4.56	4.51	4.60	4.67
DSO	days	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	80.11	80.94	79.28	78.09

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.06
= 72.17

The Days of Sales Outstanding (DSO) for Light & Wonder Inc has shown a downward trend over the past two quarters, decreasing from 66.11 days in Q4 2022 to 61.87 days in Q3 2023 and further dropping to 63.64 days in Q4 2023. This indicates that the company has been collecting its accounts receivable more efficiently compared to previous periods.

However, it is important to note that the DSO increased in Q2 2023 to 66.69 days before declining again. The company experienced a peak in DSO during Q3 and Q4 2022, with 87.76 days and 84.74 days, respectively, suggesting potential issues with collecting receivables during that time.

Overall, the recent improvement in DSO reflects better management of receivables, indicating that Light & Wonder Inc may be effectively managing its credit and collection policies. However, continued monitoring of DSO is necessary to ensure efficient cash flow management and timely collection of accounts receivable.