Light & Wonder Inc (LNW)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	28.19	58.05	53.08	33.91	38.61
Days of sales outstanding (DSO)	days	73.81	72.46	81.49	75.35	98.36
Number of days of payables	days	38.53	79.03	50.78	70.58	48.67
Cash conversion cycle	days	63.46	51.47	83.80	38.68	88.30

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.19 + 73.81 – 38.53
= 63.46

The cash conversion cycle of Light & Wonder Inc has shown fluctuations over the years. As of December 31, 2020, the cash conversion cycle was 88.30 days, indicating that the company takes approximately 88 days to convert its investments in inventory and other resources into cash inflows.

However, by December 31, 2021, the company had significantly improved its cash conversion cycle to 38.68 days, suggesting that it became more efficient in managing its working capital and converting its assets into cash within a shorter timeframe.

The cycle then increased to 83.80 days by December 31, 2022, reflecting a potential slowdown in the company's ability to convert its resources into cash.

By the end of 2023, the cash conversion cycle decreased to 51.47 days, indicating an improvement in the company's working capital management efficiency.

As of December 31, 2024, the cash conversion cycle stood at 63.46 days, showing a slight increase compared to the previous year but still an improvement from the cycles in 2020 and 2022.

Overall, the company has demonstrated some variability in its cash conversion cycle, with periods of both efficiency and inefficiency in converting its resources into cash inflows. Monitoring and managing this cycle effectively can help Light & Wonder Inc optimize its working capital performance and liquidity position.