Light & Wonder Inc (LNW)
Total asset 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,559,000 | 2,515,000 | 2,782,000 | 2,545,000 | 2,403,000 | 2,721,000 | 2,166,000 | 2,415,000 | 2,454,000 | 2,354,000 | 2,413,000 | 2,057,000 | 2,032,000 | 2,455,000 | 2,744,000 | 3,186,000 | 3,440,000 | 3,422,700 | 3,388,700 | 3,388,700 |
| Total assets | US$ in thousands | 5,552,000 | 5,887,000 | 5,962,000 | 6,022,000 | 6,009,000 | 6,246,000 | 6,481,000 | 7,952,000 | 7,883,000 | 7,850,000 | 7,762,000 | 7,856,000 | 7,984,000 | 8,102,000 | 7,844,000 | 7,458,000 | 7,809,000 | 7,907,000 | 7,932,000 | 8,837,000 |
| Total asset turnover | 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 | 0.44 | 0.43 | 0.43 | 0.38 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,559,000K ÷ $5,552,000K
= 0.46
The total asset turnover ratio measures how efficiently a company generates revenue from its assets. In the case of Light & Wonder Inc, the total asset turnover has been fluctuating over the past eight quarters.
From Q1 2022 to Q4 2023, there has been a gradual improvement in the total asset turnover ratio, indicating that the company is becoming more efficient in utilizing its assets to generate revenue. This suggests that the company has been able to increase its sales relative to its total assets.
The ratio started at 0.25 in Q1 2022 and reached its peak at 0.52 in Q4 2023, indicating that for every dollar of assets owned, the company generated $0.52 in revenue in Q4 2023. This improvement suggests better asset management and potentially increased sales efficiency.
Overall, the trend of increasing total asset turnover over the quarters is a positive sign for Light & Wonder Inc, as it indicates improved utilization of assets and better revenue generation. It is important for the company to continue monitoring and managing its asset turnover to sustain and enhance its financial performance in the future.
Peer comparison
Dec 31, 2023