Light & Wonder Inc (LNW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 425,000 | 914,000 | 585,000 | 928,000 | 313,000 |
| Short-term investments | US$ in thousands | — | — | — | 88,000 | — |
| Receivables | US$ in thousands | 506,000 | 455,000 | 423,000 | 616,000 | 755,000 |
| Total current liabilities | US$ in thousands | 696,000 | 622,000 | 974,000 | 832,000 | 766,000 |
| Quick ratio | 1.34 | 2.20 | 1.03 | 1.96 | 1.39 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($425,000K
+ $—K
+ $506,000K)
÷ $696,000K
= 1.34
The quick ratio of Light & Wonder Inc has shown some fluctuation over the past five years. In 2023, the quick ratio stands at 1.50, indicating that the company has $1.50 of liquid assets available to cover each dollar of current liabilities. This ratio has decreased from 2022 when it was 2.39, suggesting a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets.
Comparing the 2023 ratio to that of 2021 and 2019, where the quick ratios were 1.13 and 1.72 respectively, the current ratio appears to be relatively stronger in 2023. However, it is lower than the 2020 ratio of 2.25, indicating that the company may have less short-term liquidity compared to that period.
In conclusion, while the quick ratio of Light & Wonder Inc has decreased from the previous year, it still suggests the company has adequate liquid assets to cover its short-term liabilities. It is important for the company to closely monitor its liquidity position to ensure it can meet its obligations effectively.
Peer comparison
Dec 31, 2023