Light & Wonder Inc (LNW)

Number of days of payables

		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
Payables turnover		4.64	6.90	6.54	5.83	7.16	5.61	5.96	5.01	4.82	5.85	5.53	3.28	6.82	5.21	8.47	8.71	9.21	8.28	11.92	12.05
Number of days of payables	days	78.61	52.94	55.78	62.60	50.96	65.09	61.21	72.85	75.67	62.39	65.96	111.21	53.52	70.02	43.07	41.92	39.62	44.08	30.61	30.28

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.64
= 78.61

Light & Wonder Inc's number of days of payables has shown fluctuations over the past eight quarters, indicating varying efficiency in managing its accounts payable. In Q4 2023, the company took approximately 100.88 days to pay its trade payables, representing an increase compared to the previous quarter (Q3 2023) where it took 70.14 days. This suggests the company extended its payment period, potentially benefiting from improved cash flow management or vendor relationships.

Despite the recent increase in days of payables, the current level remains lower compared to the same period in the prior year (Q4 2022), where the company took 76.17 days to settle its payables. This improvement in efficiency indicates a positive trend in managing supplier obligations over the year.

Analyzing the historical data, it is evident that there have been significant fluctuations in the company's payment cycle. For instance, in Q3 and Q2 2022, Light & Wonder Inc's days of payables were substantially higher at 152.95 and 157.53 days, respectively. This prolonged payment period may indicate potential liquidity issues or strained vendor relationships during those periods.

Overall, while the recent increase in days of payables in Q4 2023 may raise some concerns about the company's cash flow management, the improvement compared to the same period last year and the historical trend suggests that Light & Wonder Inc has made strides in optimizing its accounts payable process. Monitoring this ratio in conjunction with other financial metrics will be crucial in assessing the company's working capital management and overall financial health.