Las Vegas Sands Corp (LVS)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.74 | 1.31 | 1.73 | 2.15 | 2.03 |
| Quick ratio | 0.70 | 1.26 | 2.44 | 0.80 | 0.88 |
| Cash ratio | 0.63 | 1.15 | 2.37 | 0.72 | 0.75 |
Las Vegas Sands Corp's liquidity ratios have exhibited fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, increased from 2.03 in 2020 to 2.15 in 2021 but then decreased to 1.73 in 2022 and further to 1.31 in 2023 and significantly dropped to 0.74 in 2024. This declining trend suggests a potential weakening in the company's short-term liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, showed a different pattern. It decreased from 0.88 in 2020 to 0.80 in 2021, but then sharply increased to 2.44 in 2022 before declining to 1.26 in 2023 and dropping to 0.70 in 2024. The significant fluctuations in the quick ratio indicate varying levels of liquidity and ability to meet short-term obligations without relying on inventory.
Lastly, the cash ratio, which indicates the proportion of current liabilities that could be covered by cash alone, also displayed fluctuations. It decreased from 0.75 in 2020 to 0.72 in 2021, then surged to 2.37 in 2022 before decreasing to 1.15 in 2023 and dropping to 0.63 in 2024. The volatility in the cash ratio suggests changes in the company's ability to settle its short-term obligations using cash only.
Overall, Las Vegas Sands Corp's liquidity ratios show mixed trends, with the current ratio generally declining, the quick ratio fluctuating significantly, and the cash ratio exhibiting substantial variations. These fluctuations highlight the importance of closely monitoring the company's liquidity position and managing its short-term liquidity effectively to ensure financial stability.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 3.15 | -3.18 | 12.67 | 6.97 | 31.94 |
The cash conversion cycle of Las Vegas Sands Corp has shown some fluctuations over the years based on the data provided.
As of December 31, 2020, the company had a cash conversion cycle of 31.94 days, indicating that it took approximately 31.94 days for the company to convert its investments in inventory and receivables into cash.
By December 31, 2021, the cash conversion cycle improved significantly to 6.97 days, suggesting a more efficient management of inventory and receivables, resulting in quicker cash conversion.
However, by December 31, 2022, the cash conversion cycle increased to 12.67 days, indicating a slight slowdown in the company's ability to convert investments into cash compared to the previous year.
Surprisingly, by December 31, 2023, the cash conversion cycle turned negative at -3.18 days, implying that the company was able to convert investments into cash at a faster rate than the generation of sales or purchase of new inventory and it was able to fund its operations partially with the funds generated by inventory and receivables.
In the most recent period as of December 31, 2024, the cash conversion cycle increased slightly to 3.15 days, but still remained relatively low, indicating efficient management of working capital.
Overall, the trend of the cash conversion cycle for Las Vegas Sands Corp has shown variations over the years, with periods of improvement and some fluctuations, suggesting fluctuations in the management of working capital and the company's ability to efficiently convert investments into cash. It is essential for the company to continue monitoring and improving its cash conversion cycle to ensure optimal working capital management.