Light & Wonder Inc (LNW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,421,000 | 5,552,000 | 6,009,000 | 7,883,000 | 7,984,000 |
| Total stockholders’ equity | US$ in thousands | 636,000 | 765,000 | 990,000 | -2,256,000 | -2,653,000 |
| Financial leverage ratio | 8.52 | 7.26 | 6.07 | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,421,000K ÷ $636,000K
= 8.52
The financial leverage ratio for Light & Wonder Inc shows a significant increase over the years, indicating a growing level of debt utilization to finance the company's operations. From not being available in 2020 and 2021, the ratio surged to 6.07 in 2022, further increasing to 7.26 in 2023, and reaching 8.52 by the end of 2024. This indicates that the company has been relying more on debt to support its growth and operations, which could potentially amplify both returns and risks for the business. It is important for stakeholders to monitor this trend closely to ensure that the company's debt levels are sustainable and in line with its overall financial health.
Peer comparison
Dec 31, 2024