Light & Wonder Inc (LNW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 425,000 | 914,000 | 585,000 | 928,000 | 313,000 |
| Short-term investments | US$ in thousands | — | — | — | 88,000 | — |
| Total current liabilities | US$ in thousands | 696,000 | 622,000 | 974,000 | 832,000 | 766,000 |
| Cash ratio | 0.61 | 1.47 | 0.60 | 1.22 | 0.41 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($425,000K
+ $—K)
÷ $696,000K
= 0.61
The cash ratio reflects Light & Wonder Inc's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
From 2019 to 2023, Light & Wonder Inc's cash ratio fluctuated. In 2022, the company had the highest cash ratio of 1.66, indicating a significant amount of cash and cash equivalents relative to its current liabilities. This could suggest a strong liquidity position and ability to cover short-term obligations comfortably.
In contrast, the cash ratio decreased in 2023 to 0.77, which may indicate a lower level of liquidity compared to the previous year. This could imply that the company's cash and cash equivalents decreased relative to its short-term liabilities, potentially signaling a decreased ability to cover immediate obligations solely from cash on hand.
Overall, a declining trend in the cash ratio should be monitored closely, as it may indicate potential liquidity challenges in meeting short-term obligations. Conversely, an increasing trend would suggest improved liquidity and a stronger financial position in the short term.
Peer comparison
Dec 31, 2023