Light & Wonder Inc (LNW)
Working capital 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 current assets | US$ in thousands | 1,311,000 | 1,720,000 | 1,735,000 | 1,762,000 | 1,694,000 | 2,048,000 | 1,748,000 | 1,756,000 | 1,732,000 | 1,921,000 | 2,017,000 | 2,108,000 | 2,181,000 | 2,271,000 | 1,932,000 | 1,496,000 | 1,615,000 | 1,651,000 | 1,585,000 | 2,446,000 |
| Total current liabilities | US$ in thousands | 696,000 | 619,000 | 577,000 | 642,000 | 622,000 | 802,000 | 1,254,000 | 927,000 | 974,000 | 844,000 | 780,000 | 868,000 | 832,000 | 847,000 | 1,085,000 | 735,000 | 766,000 | 1,045,000 | 733,000 | 1,786,000 |
| Working capital turnover | 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 | 4.05 | 5.65 | 3.98 | 5.13 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,559,000K ÷ ($1,311,000K – $696,000K)
= 4.16
The working capital turnover ratio for Light & Wonder Inc has shown fluctuations over the past eight quarters, ranging from a low of 1.47 in Q3 2022 to a high of 4.72 in Q4 2023. This ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets to support its sales activities.
The significant increase in the working capital turnover ratio from Q1 2023 to Q4 2023 suggests an improvement in the company's ability to generate sales revenue using its current assets. This could be a result of better management of inventory, accounts receivable, and accounts payable.
It is worth noting that the working capital turnover ratio was relatively low in Q3 2022, signaling that the company may have been less efficient in utilizing its working capital to support sales during that period. However, the ratio rebounded in subsequent quarters, indicating a positive trend in the company's working capital management.
Overall, the trend in Light & Wonder Inc's working capital turnover ratio indicates fluctuations but shows an improvement in the company's efficiency in utilizing its current assets to drive sales growth in recent quarters.
Peer comparison
Dec 31, 2023