Las Vegas Sands Corp (LVS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 61.32 | 70.89 | 85.95 | 103.27 | 73.00 |
| Receivables turnover | 21.43 | 15.28 | 20.75 | 8.55 | 14.32 |
| Payables turnover | 13.95 | 22.30 | 24.56 | 25.53 | 18.13 |
| Working capital turnover | 7.65 | 1.45 | 1.44 | 1.02 | 5.83 |
Las Vegas Sands Corp's activity ratios provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital over the past five years.
1. Inventory turnover
- Las Vegas Sands Corp's inventory turnover has fluctuated over the years, from 81.50 in 2020 to a high of 184.65 in 2019.
- The significant increase in 2019 indicates that the company was able to sell its inventory quickly, which is a positive sign of efficiency in managing inventory levels.
- In 2023, the inventory turnover decreased to 137.08, which may suggest that the company held more inventory relative to its sales compared to the previous years.
2. Receivables turnover
- The receivables turnover ratio shows how efficiently Las Vegas Sands Corp collects its accounts receivable.
- The company's receivables turnover ratio has generally increased over the years, indicating that it took less time to collect outstanding receivables.
- The ratio improved from 10.69 in 2020 to 21.43 in 2023, which suggests that the company was more effective in managing its receivables in the most recent year.
3. Payables turnover
- The payables turnover ratio reflects how quickly a company pays off its suppliers.
- Las Vegas Sands Corp's payables turnover has shown a decreasing trend, from 45.85 in 2019 to 31.19 in 2023.
- The decreasing trend may indicate that the company took longer to pay off its suppliers, which could be a strategic move to optimize working capital or take advantage of supplier terms.
4. Working capital turnover
- The working capital turnover ratio measures how efficiently working capital is utilized to generate sales.
- Las Vegas Sands Corp's working capital turnover has fluctuated over the years, with the highest ratio of 10.78 in 2020 and the lowest ratio of 1.44 in 2021.
- The increase in working capital turnover in 2020 suggests that the company effectively utilized its working capital to generate sales, while the lower ratios in other years may indicate inefficiencies in working capital management.
In conclusion, the analysis of Las Vegas Sands Corp's activity ratios reveals fluctuations in efficiency in managing inventory, receivables, payables, and working capital over the past five years. The company's ability to optimize these operational aspects is crucial for maintaining financial health and sustaining growth in the competitive casino and resort industry.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.95 | 5.15 | 4.25 | 3.53 | 5.00 |
| Days of sales outstanding (DSO) | days | 17.03 | 23.89 | 17.59 | 42.71 | 25.49 |
| Number of days of payables | days | 26.16 | 16.37 | 14.86 | 14.30 | 20.14 |
Activity ratios are important indicators of how efficiently a company manages its assets and operating cycle. Let's analyze Las Vegas Sands Corp's activity ratios based on the provided data.
1. Days of Inventory on Hand (DOH):
- DOH measures the average number of days it takes for a company to sell its inventory.
- A lower DOH is generally preferred as it indicates faster inventory turnover, which may suggest efficient inventory management.
- Las Vegas Sands Corp's DOH has fluctuated over the years, with a significant decrease from 4.48 days in 2020 to 2.66 days in 2023. This suggests that the company has been able to sell its inventory at a faster rate in 2023 compared to previous years.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for a company to collect payment after making a sale.
- A lower DSO is typically more favorable as it indicates quicker collection of accounts receivable.
- Las Vegas Sands Corp's DSO has also varied over the years, with a notable decrease from 34.16 days in 2020 to 17.03 days in 2023. This improvement suggests a more efficient collection of receivables in 2023.
3. Number of Days of Payables:
- The number of days of payables indicates how long a company takes to pay its suppliers.
- Generally, a higher number of days of payables may indicate that the company is taking longer to pay its bills.
- Las Vegas Sands Corp's days of payables have shown an increasing trend over the years, from 7.96 days in 2019 to 11.70 days in 2023. This suggests that the company has been taking longer to settle its payables in recent years.
Overall, based on the analysis of Las Vegas Sands Corp's activity ratios, the company has shown improvements in inventory turnover and accounts receivable collection efficiency in 2023. However, there has been a lengthening of the payment period to suppliers. It is essential for the company to strike a balance in managing these components to optimize its working capital management and overall operational efficiency.
See also:
Las Vegas Sands Corp Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.91 | 0.36 | 0.36 | 0.24 | 0.82 |
| Total asset turnover | 0.48 | 0.19 | 0.21 | 0.14 | 0.52 |
The long-term activity ratios of Las Vegas Sands Corp, as indicated by the fixed asset turnover and total asset turnover ratios, have shown fluctuations over the past five years.
The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio is generally more favorable as it indicates that the company is generating more revenue per dollar of fixed assets. In this case, the fixed asset turnover ratio has varied significantly, ranging from a low of 0.24 in 2020 to a high of 0.93 in 2019. The ratio improved in 2023 compared to the previous two years, suggesting a better utilization of fixed assets in generating revenue.
On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets. A higher ratio indicates better asset utilization. Las Vegas Sands Corp's total asset turnover ratio has also fluctuated, with a low of 0.17 in 2020 and a high of 0.59 in 2019. The ratio decreased in 2023 compared to the previous year, indicating a decrease in revenue generated per dollar of total assets.
Overall, the analysis of the long-term activity ratios suggests that Las Vegas Sands Corp has experienced fluctuations in asset efficiency over the past five years. The improvement in the fixed asset turnover ratio in 2023 is a positive sign, while the decrease in the total asset turnover ratio may indicate a need for the company to better optimize its total asset base to generate more sales.