Light & Wonder Inc (LNW)
Working capital 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 |
| Total current assets | US$ in thousands | 1,311,000 | 1,694,000 | 1,732,000 | 2,181,000 | 1,615,000 |
| Total current liabilities | US$ in thousands | 696,000 | 622,000 | 974,000 | 832,000 | 766,000 |
| Working capital turnover | 4.14 | 1.90 | 2.70 | 1.69 | 4.22 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,549,000K ÷ ($1,311,000K – $696,000K)
= 4.14
The working capital turnover for Light & Wonder Inc has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In 2023, the working capital turnover ratio stands at 4.72, reflecting a significant improvement compared to the previous year. This suggests that the company has become more effective in using its working capital to support its sales activities.
In 2022 and 2021, the working capital turnover ratios were 2.34 and 2.84, respectively, indicating a moderate level of efficiency in working capital management during those years.
The lowest working capital turnover ratio in the provided data is seen in 2020 at 2.02, indicating a possible decrease in the efficiency of working capital utilization that year.
In 2019, the ratio was at 4.00, showing a high level of efficiency in converting working capital into sales revenue.
Overall, the trend in the working capital turnover ratio for Light & Wonder Inc has exhibited fluctuations, with notable improvements in 2023 and 2019. It is essential for the company to maintain efficient working capital management practices to sustain and enhance its operational performance and financial health.
Peer comparison
Dec 31, 2023