Light & Wonder Inc (LNW)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 196,000 | 425,000 | 914,000 | 585,000 | 928,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 88,000 |
| Total current liabilities | US$ in thousands | 735,000 | 696,000 | 622,000 | 974,000 | 832,000 |
| Cash ratio | 0.27 | 0.61 | 1.47 | 0.60 | 1.22 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($196,000K
+ $—K)
÷ $735,000K
= 0.27
The cash ratio of Light & Wonder Inc has fluctuated over the years. As of December 31, 2020, the company had a relatively healthy cash ratio of 1.22, indicating that it had $1.22 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.60, suggesting a decline in the company's liquidity position.
The cash ratio then improved significantly to 1.47 by December 31, 2022, indicating that the company had enhanced its ability to cover its short-term obligations with cash on hand. However, this improvement was short-lived as the ratio dropped to 0.61 by December 31, 2023. This downward trend may raise concerns about the company's liquidity management.
By the end of December 31, 2024, Light & Wonder Inc's cash ratio fell further to 0.27, reflecting a significant reduction in its ability to meet its short-term obligations with available cash. This declining trend in the cash ratio over the years suggests a potential liquidity challenge that the company may need to address to ensure its financial stability and operational sustainability.
Peer comparison
Dec 31, 2024