Light & Wonder Inc (LNW)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,046,000 | 1,113,000 | 1,107,000 | 1,055,000 | 1,125,000 |
| Payables | US$ in thousands | 216,000 | 241,000 | 154,000 | 204,000 | 150,000 |
| Payables turnover | 9.47 | 4.62 | 7.19 | 5.17 | 7.50 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,046,000K ÷ $216,000K
= 9.47
The payables turnover for Light & Wonder Inc has displayed fluctuations over the years, as follows:
- In 2020, the payables turnover ratio stood at 7.50, indicating that the company converted its accounts payables approximately 7.5 times during the year.
- The ratio decreased to 5.17 in 2021, suggesting a slower rate of payables conversion compared to the previous year.
- By the end of 2022, the payables turnover ratio increased to 7.19, showing an improvement in the efficiency of payments to suppliers.
- However, in 2023, the ratio dropped to 4.62, indicating a significant decrease in the speed of paying off accounts payable.
- The most recent data for 2024 shows a notable increase in the payables turnover ratio to 9.47, signifying a faster conversion of accounts payables into cash compared to the previous year.
Overall, the fluctuating trend in the payables turnover ratio suggests variations in how Light & Wonder Inc manages its accounts payables and their relationships with suppliers over the years. It is important for the company to monitor this ratio closely to ensure efficient utilization of working capital and maintain healthy relationships with its vendors.
Peer comparison
Dec 31, 2024