Light & Wonder Inc (LNW)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,549,000 | 2,038,000 | 2,049,000 | 2,286,000 | 3,579,000 |
| Receivables | US$ in thousands | 506,000 | 455,000 | 423,000 | 616,000 | 755,000 |
| Receivables turnover | 5.04 | 4.48 | 4.84 | 3.71 | 4.74 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,549,000K ÷ $506,000K
= 5.04
Based on the data provided, Light & Wonder Inc's receivables turnover has shown a consistent increasing trend over the past five years. The receivables turnover ratio measures how efficiently a company manages its receivables by indicating the number of times receivables are collected during a period.
The company's receivables turnover ratio has increased from 4.50 in 2019 to 5.74 in 2023, which indicates that the company has been able to collect its accounts receivable more efficiently in recent years. This improvement suggests that Light & Wonder Inc has been effective in managing its credit policies, collecting receivables promptly, or potentially acquiring customers with better creditworthiness.
A higher receivables turnover ratio generally indicates better liquidity and efficiency in collecting outstanding payments from customers. It also suggests that the company is converting its credit sales into cash more quickly, which can improve cash flow and working capital management.
Overall, the increasing trend in Light & Wonder Inc's receivables turnover ratio reflects positively on the company's receivables management and suggests that it has been successful in optimizing its accounts receivable collection process over the years.
Peer comparison
Dec 31, 2023