Light & Wonder Inc (LNW)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,119,000	1,117,000	1,119,000	1,102,000	1,103,000	987,000	978,000	992,000	984,000	977,000	985,000	919,000	1,023,000	1,199,000	1,517,000	1,872,000	2,082,000	2,095,100	2,396,700	2,410,600
Inventory	US$ in thousands	177,000	183,000	183,000	172,000	161,000	137,000	129,000	113,000	98,000	105,000	184,000	191,000	119,000	223,000	233,000	248,000	244,000	257,000	238,000	229,000
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,119,000K ÷ $177,000K
= 6.32

The inventory turnover ratio for Light & Wonder Inc has shown consistent improvement over the past four quarters. In Q4 2023, the inventory turnover ratio reached 4.93, indicating that the company's inventory was turned over approximately 4.93 times during the quarter. This uptrend is a positive sign as it suggests that the company is managing its inventory more efficiently compared to previous quarters.

Furthermore, the inventory turnover ratios for Q3 and Q2 of 2023 also demonstrate strong performance, with ratios of 4.61 and 4.47 respectively. This indicates that the company has been able to sell its inventory at a faster rate in these quarters.

Comparing the Q4 2023 ratio to the same quarter in the previous year, there has been a noticeable improvement as the inventory turnover ratio increased from 4.58 in Q4 2022 to 4.93 in Q4 2023. This suggests that Light & Wonder Inc has been able to enhance its inventory management practices and is selling its products more efficiently.

Overall, the upward trend in the inventory turnover ratio for Light & Wonder Inc signifies the company's ability to manage its inventory effectively and convert it into sales, which can positively impact its profitability and cash flow.