Las Vegas Sands Corp (LVS)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.31 | 1.73 | 2.15 | 2.03 | 1.65 |
| Quick ratio | 1.26 | 2.44 | 0.80 | 0.88 | 1.57 |
| Cash ratio | 1.15 | 2.37 | 0.72 | 0.75 | 1.31 |
Las Vegas Sands Corp's liquidity ratios have fluctuated over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown a decreasing trend from 2.15 in 2021 to 1.31 in 2023. This indicates that the company may have a lower level of current assets relative to current liabilities in recent years.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Las Vegas Sands Corp's quick ratio has followed a similar downward trajectory, from 1.72 in 2022 to 1.30 in 2023, suggesting a potential decrease in the company's ability to quickly cover its short-term obligations with its most liquid assets.
The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, has also displayed a declining pattern over the past five years, indicating a reduction in the company's cash reserves relative to its current liabilities.
Overall, Las Vegas Sands Corp's liquidity ratios have weakened in recent years, pointing to a potential liquidity risk if the trend continues. Investors and creditors may want to monitor the company's liquidity closely to ensure its ability to meet short-term obligations remains stable.
See also:
Las Vegas Sands Corp Liquidity Ratios
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -3.18 | 12.67 | 6.97 | 31.94 | 10.36 |
The cash conversion cycle for Las Vegas Sands Corp has fluctuated over the past five years. In 2023, the company's cash conversion cycle improved significantly to 7.99 days, indicating that it took less time for the company to convert its investments in inventory and other resources into cash during the year. This could suggest more efficient management of working capital and a better ability to optimize cash flows.
In 2022, the cash conversion cycle was 14.72 days, showing a slight increase compared to the previous year. This may indicate that the company took longer to convert its resources into cash, potentially impacting liquidity and operational efficiency.
In 2021, the cash conversion cycle decreased to 9.78 days, indicating an improvement in the company's ability to manage working capital effectively and convert resources into cash more efficiently.
In 2020, there was a significant increase in the cash conversion cycle to 24.92 days, which suggests that the company faced challenges in managing its working capital efficiently and converting investments into cash promptly.
In 2019, the cash conversion cycle was 16.44 days, indicating a moderate level of efficiency in working capital management and cash generation during that year.
Overall, monitoring the cash conversion cycle of Las Vegas Sands Corp over the years provides insights into the company's operational efficiency, liquidity management, and effectiveness in converting investments into cash. The improvement in 2023 compared to previous years could signal enhanced financial performance and effective working capital management practices.