Light & Wonder Inc (LNW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — | — |
| Financial leverage ratio | 8.52 | 7.26 | 6.07 | — | — |
Based on the provided data for Light & Wonder Inc, we can see that the company has maintained a consistently low Debt-to-assets ratio of 0.00 over the years 2020 to 2024. This indicates that the company relies very little on debt to finance its assets and is in a relatively strong financial position in terms of solvency.
Furthermore, the Debt-to-capital ratio and Debt-to-equity ratio were not available for the years 2020 and 2021 but stood at 0.00 for the years 2022 to 2024. This suggests that Light & Wonder Inc has no debt in relation to its capital and equity, further highlighting its strong solvency position.
The Financial leverage ratio, which reflects the proportion of a company's assets that are financed by debt, increased from 6.07 in 2022 to 8.52 in 2024. This indicates a higher level of leverage in the company's capital structure over the years, although it is essential to note that this ratio is still within reasonable limits and does not raise immediate concerns regarding the company's solvency.
In summary, based on the solvency ratios analyzed, Light & Wonder Inc appears to have a stable and healthy financial position with minimal debt obligations relative to its assets, capital, and equity. The gradual increase in the Financial leverage ratio should be monitored, but overall, the company's solvency ratios indicate a sound financial footing.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.44 | 1.61 | 12.28 | 1.11 | -0.14 |
The interest coverage ratio for Light & Wonder Inc provides insights into the company's ability to meet its interest obligations.
As of December 31, 2020, the interest coverage ratio was -0.14, indicating that the company's earnings were insufficient to cover its interest expenses. This suggests a potential risk of default on interest payments.
By December 31, 2021, the interest coverage ratio improved to 1.11, but still remained on the lower end. This signifies that the company's earnings were just enough to cover its interest payments, leaving little margin for unexpected expenses or economic downturns.
However, there was a significant improvement in the interest coverage ratio by December 31, 2022, standing at 12.28. This sharp increase reflects a strong ability to cover interest expenses, indicating a healthier financial position.
Although there was a slight decrease in the ratio by December 31, 2023, to 1.61, the company remained capable of meeting its interest obligations.
As of December 31, 2024, the interest coverage ratio further improved to 2.44, demonstrating a continued ability to cover interest expenses. Overall, the trend shows varying levels of coverage over the years, with a notable improvement in financial stability from 2022 onwards.