Las Vegas Sands Corp (LVS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 106.05 | 61.32 | 70.89 | 85.95 | 103.27 |
| Receivables turnover | 27.09 | 21.43 | 15.28 | 20.75 | 8.55 |
| Payables turnover | 26.51 | 13.95 | 22.30 | 24.56 | 25.53 |
| Working capital turnover | — | 7.65 | 1.45 | 1.44 | 1.02 |
Las Vegas Sands Corp's inventory turnover has shown a decreasing trend over the years, declining from 103.27 in 2020 to 61.32 in 2023 before rebounding to 106.05 in 2024. This indicates that the company's inventory management may have been less efficient in 2023 but improved significantly in 2024.
Regarding receivables turnover, the company's performance improved consistently from 8.55 in 2020 to 27.09 in 2024. This suggests that Las Vegas Sands Corp has been collecting its receivables more rapidly in recent years, which is a positive indicator of effective credit management and liquidity.
Payables turnover for Las Vegas Sands Corp fluctuated over the years, ranging from 13.95 in 2023 to 26.51 in 2024. The company's ability to manage its payables effectively seems to have improved, except for a slight dip in 2023. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, potentially improving cash flow.
The working capital turnover ratio for Las Vegas Sands Corp showed a significant spike in 2023 to 7.65 but was not available for 2024. This suggests that the company was able to generate more revenue relative to its working capital in 2023, indicating efficient use of resources in its operations.
Overall, the activity ratios of Las Vegas Sands Corp reflect varying levels of efficiency in managing inventory, receivables, payables, and working capital over the years, with some improvements observed in certain areas such as receivables turnover and payables turnover.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.44 | 5.95 | 5.15 | 4.25 | 3.53 |
| Days of sales outstanding (DSO) | days | 13.47 | 17.03 | 23.89 | 17.59 | 42.71 |
| Number of days of payables | days | 13.77 | 26.16 | 16.37 | 14.86 | 14.30 |
The activity ratios of Las Vegas Sands Corp show the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The company's DOH has been fluctuating over the years, ranging from 3.44 to 5.95 days. A lower DOH indicates faster inventory turnover, while a higher DOH suggests slower turnover. Las Vegas Sands Corp saw an increase in DOH from 2020 to 2024, which may indicate potential issues in managing inventory levels efficiently.
2. Days of Sales Outstanding (DSO):
- The DSO measures the average number of days a company takes to collect payment after a sale. Las Vegas Sands Corp has shown a decreasing trend in DSO from 42.71 days in 2020 to 13.47 days in 2024. A lower DSO indicates quicker collection of receivables, demonstrating effective credit management and customer payment practices.
3. Number of Days of Payables:
- The number of days of payables indicates the average number of days a company takes to pay its suppliers. Las Vegas Sands Corp maintained a relatively stable number of days of payables over the years, with a slight increase in 2023. A longer period of payables suggests better cash flow management as the company is able to hold onto cash longer before paying off obligations.
In summary, Las Vegas Sands Corp has shown improvements in its collection of receivables and management of payables over the years. However, the increase in days of inventory on hand raises concerns about efficient inventory management practices that need to be addressed to optimize the company's working capital.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.94 | 0.91 | 0.36 | 0.36 | 0.24 |
| Total asset turnover | 0.55 | 0.48 | 0.19 | 0.21 | 0.14 |
Las Vegas Sands Corp's fixed asset turnover has shown an improvement over the years, increasing from 0.24 in 2020 to 0.94 in 2024. This indicates that the company is generating more revenue from its fixed assets, such as property, plant, and equipment. The upward trend suggests that Las Vegas Sands Corp has been more efficient in utilizing its fixed assets to generate sales.
In terms of total asset turnover, the company's performance has also improved, rising from 0.14 in 2020 to 0.55 in 2024. This signifies that Las Vegas Sands Corp has been able to generate more sales relative to its total assets. The increasing total asset turnover ratio indicates that the company is utilizing its assets more effectively to drive revenue.
Overall, the upward trends in both fixed asset turnover and total asset turnover ratios suggest that Las Vegas Sands Corp has been increasingly efficient in generating revenue from its assets over the years, which is a positive sign of operational efficiency and asset management.