Light & Wonder Inc (LNW)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 12.99 6.23 5.97 6.35 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
Receivables turnover 4.94 4.93 4.84 5.27 5.06 5.27 5.58 5.56 5.28 6.39 5.22 5.60 5.80 5.67 3.79 3.31 3.30 3.71 4.48 5.11
Payables turnover 9.50 5.70 4.01 5.27 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
Working capital turnover 6.44 4.77 4.69 4.00 4.16 2.28 2.40 2.27 2.24 2.18 4.38 2.91 3.24 2.19 1.95 1.66 1.51 1.72 3.24 4.19

Light & Wonder Inc's activity ratios provide insight into how efficiently the company manages its assets and operations.

1. Inventory turnover: Light & Wonder Inc's inventory turnover ratio has varied over the years, ranging from a low of 4.81 to a high of 12.99. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which can be a positive sign of efficient inventory management.

2. Receivables turnover: The receivables turnover ratio for Light & Wonder Inc has fluctuated between 3.30 and 6.39. A higher receivables turnover ratio suggests that the company is collecting its receivables more quickly, which can improve cash flow and liquidity.

3. Payables turnover: Light & Wonder Inc's payables turnover ratio has also been inconsistent, ranging from 3.28 to 9.50. A higher payables turnover ratio implies that the company is managing its payables effectively, potentially benefiting from longer payment terms.

4. Working capital turnover: The working capital turnover ratio for Light & Wonder Inc has shown variability, with values between 1.51 and 6.44. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue.

Overall, analyzing these activity ratios together can provide a comprehensive view of how effectively Light & Wonder Inc is managing its assets, inventory, receivables, payables, and working capital to drive operational efficiency and financial performance.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 28.10 58.59 61.16 57.49 57.73 59.80 59.69 56.97 53.28 50.66 48.14 41.58 36.35 39.23 68.18 75.86 42.46 67.89 56.06 48.35
Days of sales outstanding (DSO) days 73.96 74.10 75.47 69.29 72.17 69.23 65.47 65.69 69.11 57.14 69.93 65.14 62.92 64.35 96.20 110.19 110.65 98.42 81.41 71.49
Number of days of payables days 38.42 64.04 91.09 69.32 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

The activity ratios of Light & Wonder Inc indicate how efficiently the company is managing its inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows that Light & Wonder Inc has improved its inventory management over the years, with a decrease in the number of days inventory is held from 75.86 days on March 31, 2021, to 28.10 days on December 31, 2024. This implies the company is selling its inventory at a faster pace.

2. Days of Sales Outstanding (DSO): The DSO ratio for Light & Wonder fluctuated, reaching a peak of 110.65 days on December 31, 2020, before decreasing to 62.92 days on December 31, 2021. This suggests the company has become more efficient in collecting its accounts receivable over time.

3. Number of Days of Payables: The number of days of payables for Light & Wonder Inc ranged from 41.92 days on March 31, 2020, to 91.09 days on June 30, 2024. This indicates variations in the company's payment terms with suppliers. The decrease in days of payables from 111.21 days on March 31, 2021, to 38.42 days on December 31, 2024, suggests a shift towards shorter payment cycles.

Overall, the activity ratios of Light & Wonder Inc reflect improvements in inventory turnover, accounts receivable collection, and changes in payables management practices over the years.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 10.09 10.17 10.34 10.79 10.84 10.98 13.00 11.89 11.78 13.47 10.57 12.26 11.52 10.80 6.17 5.07 8.40 5.66 6.14 6.72
Total asset turnover 0.53 0.51 0.50 0.48 0.46 0.43 0.47 0.42 0.40 0.44 0.33 0.30 0.31 0.30 0.31 0.26 0.25 0.30 0.35 0.43

The fixed asset turnover ratio of Light & Wonder Inc has seen fluctuations over the years, with an increasing trend from March 31, 2020, to June 30, 2022. The ratio peaked at 13.47 on September 30, 2022, indicating that the company generated $13.47 in sales for every dollar invested in fixed assets. However, the ratio has slightly decreased since then, settling at 10.09 on December 31, 2024.

On the other hand, the total asset turnover ratio of the company has been quite low initially, at 0.25 on December 31, 2020, suggesting that the company was not efficiently using its total assets to generate sales. However, there has been a steady improvement in this ratio over the years, reaching 0.53 on December 31, 2024, indicating that the company generated $0.53 in sales for every dollar invested in total assets.

Overall, the fixed asset turnover ratio reflects how efficiently the company is utilizing its fixed assets to generate sales, while the total asset turnover ratio indicates the effectiveness of using all assets to generate revenue. The increasing trend in both ratios over time suggests improved efficiency and effectiveness in asset utilization by Light & Wonder Inc.