Light & Wonder Inc (LNW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,113,000 | 1,107,000 | 1,055,000 | 1,125,000 | 2,325,000 |
| Payables | US$ in thousands | 241,000 | 154,000 | 204,000 | 150,000 | 226,000 |
| Payables turnover | 4.62 | 7.19 | 5.17 | 7.50 | 10.29 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,113,000K ÷ $241,000K
= 4.62
The payables turnover ratio of Light & Wonder Inc has fluctuated over the past five years. In 2023, the payables turnover ratio was 3.62, which indicates that the company took approximately 3.62 times to pay off its accounts payable during the year. This represents a decrease from the previous year's ratio of 4.79.
The declining trend in the payables turnover ratio suggests that the company is taking longer to pay its suppliers compared to the previous year. A lower payables turnover ratio could imply that the company is extending its payment terms with suppliers, potentially affecting supplier relationships or liquidity management.
It is important for Light & Wonder Inc to closely monitor and manage its payables turnover ratio to ensure timely payments to suppliers while maintaining healthy cash flow and preserving relationships with vendors. Further analysis of the company's cash flow and working capital management practices may provide insights into the reasons behind the fluctuations in the payables turnover ratio.
Peer comparison
Dec 31, 2023