Light & Wonder Inc (LNW)
Payables 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 |
| Payables | US$ in thousands | 241,000 | 162,000 | 171,000 | 189,000 | 154,000 | 176,000 | 164,000 | 198,000 | 204,000 | 167,000 | 178,000 | 280,000 | 150,000 | 230,000 | 179,000 | 215,000 | 226,000 | 253,000 | 201,000 | 200,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,119,000K ÷ $241,000K
= 4.64
The payables turnover ratio reflects how efficiently a company is managing its accounts payable by indicating the number of times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio generally indicates more efficient management of accounts payable.
Analyzing the payables turnover ratio of Light & Wonder Inc over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the payables turnover ratio was 3.62, which was lower compared to Q3 2023 (5.20) but higher than Q1 2023 (4.13).
The trend shows that there was a significant increase in the payables turnover ratio from Q2 2022 to Q3 2022, indicating that the company improved its efficiency in paying off its accounts payable during that period. However, there was a decrease in the ratio in Q4 2022, followed by fluctuations in the first half of 2023.
It is important to assess the payables turnover ratio in conjunction with other financial ratios and factors affecting the company's operations to gain a comprehensive understanding of its financial performance and operational efficiency. Further analysis is recommended to evaluate the effectiveness of Light & Wonder Inc's accounts payable management and its impact on the overall financial health of the company.
Peer comparison
Dec 31, 2023