Light & Wonder Inc (LNW)

Cash conversion cycle

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 28.10 58.59 61.16 57.49 57.73 59.80 59.69 56.97 53.28 50.66 48.14 41.58 36.35 39.23 68.18 75.86 42.46 67.89 56.06 48.35
Days of sales outstanding (DSO) days 73.96 74.10 75.47 69.29 72.17 69.23 65.47 65.69 69.11 57.14 69.93 65.14 62.92 64.35 96.20 110.19 110.65 98.42 81.41 71.49
Number of days of payables days 38.42 64.04 91.09 69.32 78.61 52.94 55.78 62.60 50.96 65.09 61.21 72.85 75.67 62.39 65.96 111.21 53.52 70.02 43.07 41.92
Cash conversion cycle days 63.64 68.66 45.54 57.46 51.30 76.09 69.38 60.05 71.43 42.72 56.87 33.87 23.60 41.19 98.43 74.84 99.59 96.29 94.40 77.92

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.10 + 73.96 – 38.42
= 63.64

The cash conversion cycle of Light & Wonder Inc has shown fluctuations over the years based on the provided data. The cash conversion cycle reflects the time it takes for a company to convert its investments in inventory into cash flows from sales.

From March 31, 2020, to December 31, 2020, the cash conversion cycle increased from 77.92 days to 99.59 days, indicating a longer period for the company to convert its investments into cash. However, there was a significant improvement by March 31, 2021, with the cycle decreasing to 74.84 days.

Throughout the following years, there were fluctuations in the cash conversion cycle with periods of increase and decrease. Notably, there was a substantial improvement by December 31, 2021, with the cycle decreasing to 23.60 days, indicating more efficient management of inventory and receivables.

The trend continued with fluctuations in the following years, with the cycle reaching its lowest point on September 30, 2021, at 41.19 days. This suggests that the company was effectively managing its working capital during that period.

Overall, the cash conversion cycle of Light & Wonder Inc has shown variability over the years, with periods of improvement and challenges. Monitoring and managing the cash conversion cycle is crucial for ensuring the company's liquidity and operational efficiency.