Light & Wonder Inc (LNW)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 196,000 | 347,000 | 321,000 | 450,000 | 425,000 | 891,000 | 909,000 | 931,000 | 914,000 | 1,277,000 | 928,000 | 496,000 | 585,000 | 782,000 | 932,000 | 967,000 | 928,000 | 1,045,000 | 790,000 | 334,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 88,000 | — | — | — |
| Total current liabilities | US$ in thousands | 735,000 | 680,000 | 696,000 | 677,000 | 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 |
| Cash ratio | 0.27 | 0.51 | 0.46 | 0.66 | 0.61 | 1.44 | 1.58 | 1.45 | 1.47 | 1.59 | 0.74 | 0.54 | 0.60 | 0.93 | 1.19 | 1.11 | 1.22 | 1.23 | 0.73 | 0.45 |
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 shown some fluctuations over the past few years, ranging from 0.27 to 1.59. The cash ratio represents the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
The cash ratio increased steadily from 0.45 on March 31, 2020, to a peak of 1.59 on September 30, 2022, reflecting a significant improvement in the company's liquidity position. However, the ratio declined thereafter, reaching 0.27 on December 31, 2024.
The decrease in the cash ratio towards the end of the period could signal a potential liquidity challenge for Light & Wonder Inc. It is essential for the company to monitor its cash reserves closely to ensure it can meet its short-term obligations efficiently. Further analysis of the company's cash flow management and working capital practices may be necessary to address any liquidity concerns that might arise in the future.
Peer comparison
Dec 31, 2024