Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Las Vegas Sands Corp., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.73 | 2.15 | 1.15 | 1.65 | 1.76 | |
| Quick ratio | 1.69 | 0.81 | 1.07 | 1.58 | 1.71 | |
| Cash ratio | 1.62 | 0.73 | 0.93 | 1.32 | 1.48 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The liquidity position exhibited significant fluctuations between 2018 and 2022, characterized by a general contraction of liquid reserves that reached a nadir in 2021, followed by a robust recovery in the final reporting period.
- Current Ratio Analysis
- The current ratio showed a downward trend from 1.76 in 2018 to 1.15 in 2020. A sharp increase followed in 2021, reaching a peak of 2.15, before moderating to 1.73 by the end of 2022. This volatility indicates periodic shifts in the relationship between total current assets and current liabilities.
- Quick and Cash Ratio Trends
- A consistent decline is observed in both the quick and cash ratios from 2018 through 2021. The quick ratio decreased from 1.71 to 0.81, while the cash ratio fell from 1.48 to 0.73. This trend suggests a period of tightening liquidity regarding the most immediate assets available to cover short-term obligations. However, both ratios experienced a substantial rebound in 2022, returning to 1.69 and 1.62, respectively.
- Liquidity Divergence in 2021
- A notable divergence occurred in 2021, where the current ratio reached its five-year peak of 2.15, while the quick and cash ratios hit their lowest points. This gap indicates that the increase in the current ratio during that year was driven by current assets excluding cash and receivables, such as inventories or prepaid expenses, rather than the most liquid components of the asset base.
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Current Ratio
Las Vegas Sands Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 6,744) | 5,510) | 2,644) | 5,305) | 5,566) | |
| Current liabilities | 3,902) | 2,565) | 2,309) | 3,224) | 3,157) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.73 | 2.15 | 1.15 | 1.65 | 1.76 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.86 | 1.95 | — | — | — | |
| Booking Holdings Inc. | 1.86 | 2.10 | — | — | — | |
| Chipotle Mexican Grill Inc. | 1.28 | 1.58 | — | — | — | |
| DoorDash, Inc. | 1.86 | 2.59 | — | — | — | |
| McDonald’s Corp. | 1.43 | 1.78 | — | — | — | |
| Starbucks Corp. | 0.77 | 1.20 | 1.06 | — | — | |
| Current Ratio, Sector | ||||||
| Consumer Services | 1.49 | 1.77 | — | — | — | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.15 | 1.25 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,744 ÷ 3,902 = 1.73
2 Click competitor name to see calculations.
The liquidity position of the organization exhibited significant volatility between 2018 and 2022, characterized by a sharp contraction in 2020 followed by a rapid recovery and subsequent stabilization. The overall trajectory indicates a capacity to maintain a current ratio above 1.0, ensuring that short-term obligations remained covered throughout the analyzed period.
- Current Asset Trends
- Current assets remained relatively stable between 2018 and 2019 before experiencing a severe decline in 2020, falling from 5,305 million USD to 2,644 million USD. This represents a reduction of approximately 50%. However, a strong recovery occurred in 2021, with assets returning to 5,510 million USD, and further increasing to a five-year peak of 6,744 million USD by the end of 2022.
- Current Liability Trends
- Current liabilities showed a moderate increase from 2018 to 2019, followed by a decrease to 2,309 million USD in 2020. After a period of relative stability in 2021, there was a substantial increase in 2022, with liabilities rising to 3,902 million USD, the highest level recorded in the five-year span.
- Current Ratio Analysis
- The current ratio followed a U-shaped pattern of decline and recovery. After starting at 1.76 in 2018, the ratio reached a minimum of 1.15 in 2020, indicating a tightening of liquidity. A significant spike occurred in 2021, where the ratio peaked at 2.15, driven by the rapid restoration of current assets while liabilities remained low. By 2022, the ratio normalized to 1.73, closely aligning with the pre-2020 liquidity levels despite the increase in total current liabilities.
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Quick Ratio
Las Vegas Sands Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,311) | 1,854) | 2,121) | 4,226) | 4,648) | |
| Restricted cash and cash equivalents | —) | 16) | 16) | 16) | 13) | |
| Accounts receivable, net of provision for credit losses | 267) | 202) | 338) | 844) | 726) | |
| Total quick assets | 6,578) | 2,072) | 2,475) | 5,086) | 5,387) | |
| Current liabilities | 3,902) | 2,565) | 2,309) | 3,224) | 3,157) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.69 | 0.81 | 1.07 | 1.58 | 1.71 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.83 | 1.91 | — | — | — | |
| Booking Holdings Inc. | 1.73 | 2.00 | — | — | — | |
| Chipotle Mexican Grill Inc. | 1.09 | 1.35 | — | — | — | |
| DoorDash, Inc. | 1.54 | 2.33 | — | — | — | |
| McDonald’s Corp. | 1.24 | 1.64 | — | — | — | |
| Starbucks Corp. | 0.48 | 0.93 | 0.75 | — | — | |
| Quick Ratio, Sector | ||||||
| Consumer Services | 1.31 | 1.61 | — | — | — | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.81 | 0.93 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,578 ÷ 3,902 = 1.69
2 Click competitor name to see calculations.
The liquidity position of the organization from 2018 to 2022 was characterized by a significant U-shaped trend, featuring a multi-year decline in liquidity followed by a sharp recovery in the final year of the period.
- Quick Ratio Trajectory
- A consistent downward trend is observed from 2018 to 2021, with the quick ratio decreasing from 1.71 to 0.81. This decline indicates a weakening ability to cover short-term obligations using only the most liquid assets, culminating in a position below the 1.0 threshold in 2021. This trend was reversed in 2022, when the ratio surged to 1.69, restoring the liquidity buffer to levels nearly identical to those seen in 2018.
- Quick Asset Fluctuations
- Total quick assets experienced a substantial contraction between 2019 and 2021, falling from US$ 5,086 million to a period low of US$ 2,072 million. This reduction in liquid resources was the primary driver behind the deteriorating quick ratio. However, a significant capital influx or asset reallocation occurred in 2022, resulting in total quick assets rising to US$ 6,578 million, the highest value in the analyzed period.
- Current Liabilities Analysis
- Current liabilities demonstrated less volatility than quick assets, though they followed a fluctuating path. After a decrease to US$ 2,309 million in 2020, liabilities rose steadily to reach US$ 3,902 million by December 31, 2022. Despite this increase in short-term obligations, the disproportionate growth in quick assets during 2022 ensured a net improvement in the overall liquidity profile.
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Cash Ratio
Las Vegas Sands Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,311) | 1,854) | 2,121) | 4,226) | 4,648) | |
| Restricted cash and cash equivalents | —) | 16) | 16) | 16) | 13) | |
| Total cash assets | 6,311) | 1,870) | 2,137) | 4,242) | 4,661) | |
| Current liabilities | 3,902) | 2,565) | 2,309) | 3,224) | 3,157) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.62 | 0.73 | 0.93 | 1.32 | 1.48 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.21 | 1.31 | — | — | — | |
| Booking Holdings Inc. | 1.46 | 1.79 | — | — | — | |
| Chipotle Mexican Grill Inc. | 0.98 | 1.23 | — | — | — | |
| DoorDash, Inc. | 1.38 | 2.13 | — | — | — | |
| McDonald’s Corp. | 0.68 | 1.17 | — | — | — | |
| Starbucks Corp. | 0.35 | 0.81 | 0.63 | — | — | |
| Cash Ratio, Sector | ||||||
| Consumer Services | 0.98 | 1.30 | — | — | — | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.47 | 0.64 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,311 ÷ 3,902 = 1.62
2 Click competitor name to see calculations.
The cash ratio of Las Vegas Sands Corp. exhibited significant volatility between 2018 and 2022, characterized by a steady decline followed by a sharp recovery. The ratio transitioned from a strong position of 1.48 in 2018 to a period of diminished liquidity, before reaching a five-year peak in 2022.
- Liquidity Contraction (2018–2021)
- A consistent downward trend in the cash ratio is observed from 2018 to 2021, with the ratio falling from 1.48 to 0.73. This deterioration was primarily driven by a substantial reduction in total cash assets, which decreased from 4,661 million USD in 2018 to 1,870 million USD in 2021. The most acute decline occurred between 2019 and 2020, where cash assets fell by approximately 50%, causing the cash ratio to drop below the 1.0 threshold. By 2021, the company's cash reserves were insufficient to cover its current liabilities of 2,565 million USD using only its most liquid assets.
- Liquidity Recovery (2022)
- A significant reversal in the liquidity trend occurred in 2022. Total cash assets increased sharply to 6,311 million USD, the highest level recorded in the analyzed period. Despite a corresponding increase in current liabilities to 3,902 million USD, the substantial influx of cash resulted in a cash ratio of 1.62. This indicates a robust restoration of the company's ability to meet short-term obligations immediately, surpassing the liquidity levels seen at the start of the observed period.
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