Las Vegas Sands Corp. (NYSE:LVS)

The analysis of financial ratios over the quarterly periods reveals several key trends and insights regarding operational efficiency and working capital management.

Inventory Turnover

This ratio demonstrates a notable decline starting from early 2019, with inventory turnover decreasing significantly through 2020, reaching a low point of 81.5 by year-end 2020. Subsequently, this ratio shows a recovery trend, gradually improving through 2023 and peaking at 126.8 in the third quarter, though still below pre-2020 levels. This pattern suggests a period of slower inventory movement likely due to disrupted operations, followed by gradual normalization.

Receivables Turnover

The receivables turnover ratio experienced fluctuations throughout the observed quarters. It declined slightly in 2019, dropped sharply in late 2020 to a low of 10.69, indicating slower collections, then rebounded robustly in 2021 and 2022, reaching highs above 27. This indicates improved collection efficiency post-2020, with some variability persisting into 2023 but maintaining an overall stronger position compared to the downturn period.

Payables Turnover

The payables turnover ratio exhibited considerable volatility. It was relatively stable in 2019, surged dramatically to over 73 during early to mid-2020, reflecting potentially faster payments or decreased reliance on supplier credit, then declined steadily through 2021 and 2022, stabilizing around the high 20s in 2023. This suggests a shift in payment policies or supplier relationships amidst operational changes during the pandemic, followed by moderated payment pacing in recent quarters.

Working Capital Turnover

This ratio shows significant fluctuation, particularly depressed in 2021 with values below 2, indicating potential inefficiencies or structural impacts on working capital utilization. Although it improved somewhat in late 2022 and into 2023, increasing to over 4 by the third quarter, the ratio remains well below pre-pandemic levels observed in 2019. The substantial drop and slow recovery highlight challenges in managing working capital effectively during and after the crisis period.

Average Inventory Processing Period

The inventory processing period remained remarkably stable, hovering between 2 to 4 days over the entire timeframe. This stability suggests consistent inventory management practices despite external disruptions.

Average Receivable Collection Period

The period shows an increase from around 19-22 days in 2019 to a peak of 34 days in late 2020, reflecting slower collections during the pandemic's height. After this peak, it declined sharply in 2021 to as low as 14 days, indicating improved collection efficiency, then experienced moderate fluctuations with a slight upward trend in mid-2022 and 2023.

Operating Cycle

The operating cycle, combining inventory and receivable periods, extended significantly in 2020, peaking at 38 days. This extension reflects operational delays and slower cash inflows. Post-2020, the cycle shortened markedly in 2021 to around 17 days but then gradually lengthened again through 2022 and early 2023, suggesting ongoing adjustments in operational timing and cash flow management.

Average Payables Payment Period

This metric shortened during 2020, reaching as low as 5 days, indicative of faster payments possibly to suppliers during the crisis, then increased steadily to around 14 days by late 2022 and maintained this higher level into 2023. The increase denotes a return to extended payment terms or delayed payables as part of working capital optimization.

Cash Conversion Cycle

The cash conversion cycle extended from approximately 13-16 days in 2019 to a peak near 24 days in late 2020, signifying a longer duration to convert resources into cash inflow. Thereafter, it contracted significantly, hitting lows of around 6-7 days in late 2021 and early 2022, reflecting improved liquidity management. However, some elongation occurred again in late 2022 and 2023, though the cycle remained shorter than the pandemic peak.

Overall, the data illustrates a pronounced operational impact and changes in financial management coinciding with the 2020 crisis period. This is evidenced by decreased turnover ratios, extended collection and payment periods, and lengthening of operating and cash conversion cycles. Subsequent quarters demonstrate efforts and partial success in restoring operational efficiency and working capital turnover, although some metrics have not yet returned to pre-crisis levels, indicating ongoing adaptation challenges.

The analysis of the quarterly financial data reveals several notable trends in cost of revenues, inventories, and inventory turnover over the observed periods.

Cost of revenues

There is a clear downward trend in cost of revenues from early 2019 through 2020, reaching its lowest levels during mid to late 2020. Specifically, quarterly costs decreased from over 1,800 million US dollars in early 2019 to as low as approximately 370 million in mid-2020. This significant reduction likely reflects operational cutbacks or reduced activity during that timeframe. Starting from early 2021, costs gradually increase again, indicating a recovery phase, reaching around 1,300-1,400 million US dollars by late 2023. This rebound suggests a restoration of business activity or scaling-up of operations after the earlier dip.

Inventories

Inventories have remained relatively stable across the periods, fluctuating mildly between 22 and 37 million US dollars. A slight decrease occurred from 2019 to early 2021, with values stabilizing around the low 20 millions, followed by a small upward movement towards the end of the data series. The limited variation in inventory levels despite large swings in cost of revenues could indicate effective inventory management or consistent inventory policies irrespective of operational fluctuations.

Inventory turnover ratio

The inventory turnover ratio shows a pronounced declining trend from early 2019 through the end of 2020, dropping from above 200 to below 90. This decline signifies that the company was turning over its inventory less frequently during this timeframe, potentially a consequence of reduced sales or slower inventory movement amid challenging conditions. In 2021 and onward, the turnover ratio gradually improves, rising back above 100 and nearing 130 by late 2023. This improvement signifies enhanced efficiency or stronger demand, leading to faster inventory turnover aligning with the recovery in cost of revenues.

Overall, the data indicates a period of downturn in 2020 with substantially reduced cost of revenues and diminished inventory turnover, followed by a phase of gradual recovery through 2021 to 2023. Inventory levels remained comparatively stable, suggesting a consistent approach to inventory despite changes in operational activity. The recovery in cost levels and turnover ratios points to resumed business momentum in recent quarters.

Net Revenues

Net revenues exhibited a generally declining trend from early 2019 through mid-2020, reaching a significant low in the second quarter of 2020. This sharp decrease is apparent between March 31, 2020, and June 30, 2020, where revenues decreased from 1,782 million USD to 98 million USD. Following this trough, there is a gradual recovery visible throughout the remaining quarters, with revenues trending upward into 2023. The recovery gains momentum particularly from March 31, 2023 onwards, with net revenues rising from 2,120 million USD to 2,795 million USD by the third quarter of 2023, reflecting notable improvement relative to the pandemic-impacted period.

Accounts Receivable, Net of Provision for Credit Losses

Accounts receivable followed a generally decreasing trend from early 2019 through December 2020, declining from 737 million USD to a low point of 338 million USD. This reduction aligns with the steep revenue drop during the same period. Starting in 2021, the receivables balance remained relatively low compared to the initial 2019 levels but showed gradual incremental increases over the subsequent quarters. By the third quarter of 2023, accounts receivable had risen to 390 million USD, indicating a rebound consistent with improving sales and revenue figures.

Receivables Turnover Ratio

The receivables turnover ratio indicates how efficiently the company collects its receivables. It started around 18.7 in March 2019 and remained in a similar range through early 2020, then dipped sharply to 10.69 in December 2020, corresponding with the increased accounts receivable and reduced revenues during the pandemic. Post-2020, the ratio improved markedly, reaching peak values above 26 in mid to late 2021, suggesting highly efficient collections during the recovery phase. However, from late 2021 through 2022, the turnover ratio gradually moderated downward, experiencing fluctuations but generally maintaining efficiencies between approximately 15 and 27. In 2023, the ratio increased again, reaching nearly 22 by September 2023, indicating sustained improved collection efficiency in line with increasing revenue trends.

Summary

The data reveal a strong impact on the company’s financials starting in the first half of 2020, with drastic reductions in net revenues and corresponding declines in accounts receivable, likely driven by external disruptions. Receivables turnover efficiency also transiently decreased during this period. From late 2020 onward, a phased recovery is observed as revenues gradually rise, accounts receivable stabilize and increase modestly, and receivables turnover ratio improves, reflecting restored operational performance and efficient credit management. By 2023, net revenues approach or exceed pre-pandemic levels, and receivables turnover demonstrates a return to healthy collection cycles, signaling overall financial recovery and operational normalization.

Cost of Revenues

The cost of revenues exhibited a declining trend during 2019 and the early phases of 2020, reaching a significant low in the second quarter of 2020. This period corresponds with a notable decrease likely influenced by external factors impacting operations. Starting from the third quarter of 2020, costs began to gradually rise, demonstrating a recovery trajectory. By the first three quarters of 2023, cost levels increased substantially, nearing or surpassing figures seen prior to the downturn.

Accounts Payable

Accounts payable values decreased markedly from the first quarter of 2019 through mid-2020, mirroring the reduction in operational scale suggested by cost trends. From late 2020 onward, payables rose progressively, reflecting increased purchasing or supplier credit utilization. The upward movement persisted through 2023, reaching the highest recorded values by the latest quarter, indicating expanding payables relative to prior periods.

Payables Turnover Ratio

The payables turnover ratio was relatively high in early 2019, suggesting rapid payment of obligations. During 2020, the ratio peaked around mid-year, coinciding with minimized cost of revenues and payables, perhaps reflecting accelerated payment due to reduced purchasing. However, from late 2020 forward, the ratio declined steadily and remained lower through 2023, indicating slower payment cycles and potentially extended credit terms or changes in supplier payment patterns.

Overall Insights

The financial data reflects a period of contraction in 2020 with reductions in cost of revenues and accounts payable, followed by gradual recovery in subsequent quarters. The increasing costs and payables throughout 2021 to 2023 suggest a return to or expansion beyond pre-2020 operational activity levels. The declining payables turnover ratio during recovery indicates a lengthening of payment periods to suppliers, which may be a strategic or operational adjustment in working capital management. These patterns indicate significant operational impact during 2020 with a progressive normalization and growth phase thereafter.

The quarterly financial data reveals several key trends in the company's operations over the analyzed periods. Working capital shows fluctuations with an overall increasing pattern after a notable decline in 2020. Net revenues demonstrate significant volatility, particularly around early 2020 and the following quarters, with a general recovery and growth trend seen in more recent periods. The working capital turnover ratio exhibits substantial variation, indicating changes in how efficiently the company utilizes its working capital to generate revenues.

Working Capital

The working capital declined sharply in the first half of 2020, reaching its lowest values during the mid and late quarters of that year. This decline reflects possible operational or market challenges during that period. From 2021 onwards, working capital recovered markedly, peaking in early 2022, followed by a downward adjustment but remaining at levels higher than most of 2019 and 2020. The decline towards the last quarter of 2023 suggests renewed pressure or changes in short-term asset and liability management.

Net Revenues

Net revenues experienced a significant downturn beginning in the first quarter of 2020, dropping to very low levels in mid-2020, consistent with severe operational disruptions. Revenue figures gradually improved throughout 2021 and 2022, showing a consistent upward movement in each quarter. The data for 2023 reveals a strong recovery trajectory with revenues increasing substantially, especially when contrasted with the pandemic-impacted quarters. This recovery suggests renewed market demand and operational stability.

Working Capital Turnover Ratio

The turnover ratio peaked in early 2020 despite declining net revenues and working capital, reflecting a sharp drop in working capital that outpaced revenue declines temporarily. Subsequently, there was a marked decrease in this ratio throughout 2021 and 2022, indicating reduced efficiency in generating revenues from working capital during the recovery phase. The ratio improves again significantly in 2023, hinting at better utilization of working capital relative to revenue generation in recent quarters.

Overall, the data illustrates significant disruption in early 2020, likely related to external economic or market conditions, followed by a gradual and steady recovery in both working capital and revenue generation capacity. Efficiency metrics mirror these trends, emphasizing operational adjustments made to optimize resource use during fluctuating market conditions.

Inventory Turnover

The inventory turnover ratio exhibited a declining trend from early 2019 through the end of 2020, decreasing from 201.26 in March 2019 to a low of 81.5 by December 2020. This decline reflects a slowing rate at which inventory was sold or used during this period. Starting in 2021, the ratio recovered gradually, rising to 119.36 by December 2021 and showing further improvement into 2023, reaching 126.8 in September 2023. Despite this recovery, the turnover rate in 2023 remained below the levels observed in early 2019, indicating a moderated but improving efficiency in inventory management.

Average Inventory Processing Period

The average inventory processing period, representing the number of days inventory is held, remained relatively stable throughout the periods analyzed. The period was consistently around 2 days during 2019, with a slight increase to 3-4 days occurring in 2020. From 2021 onwards, the processing period stabilized between 3 and 4 days, indicating a marginal lengthening in the time inventory is held compared to 2019, but no significant volatility over the quarters.

Overall Analysis

The observed decline in inventory turnover during 2019 and 2020 suggests challenges in inventory movement, likely impacted by external factors affecting sales or operations during this time. The subsequent partial recovery through 2021 to 2023 indicates an improving inventory cycle and operational adjustments. The fairly steady average inventory processing period, with only a slight increase post-2019, supports the notion that while inventory turnover slowed, the duration inventory was held remained relatively controlled. Together, these metrics suggest cautious improvement in inventory management efficiency following a period of operational disruption.

The analysis of the receivables turnover and the average receivable collection period over the quarterly periods reveals notable fluctuations and distinct trends that illustrate changing efficiency in the company's credit and cash collection processes.

Receivables Turnover

Initially, the receivables turnover ratio remained relatively stable from March 2019 through September 2019, fluctuating slightly around 18. As the year progressed toward December 2019, the ratio declined to 16.28, indicating a slower collection of receivables.

The early months of 2020 showed some recovery, with ratios bouncing back up to around 18 in the first quarter, before declining steadily through the year to the lowest point of 10.69 in December 2020. This sharp decrease in turnover implies a considerable slowdown in the speed of converting receivables into cash during the pandemic period.

Starting in 2021, a pronounced improvement occurred, with the turnover ratio increasing markedly to above 25 in mid-year quarters (June and September 2021). Although there was a subsequent decline toward the end of 2021 and into early 2022, the turnover ratio remained higher compared to the low points of 2020.

Throughout 2022 and into 2023, the ratio exhibited a declining trend overall, decreasing from a high of 27.08 in March 2022 to lower levels around 15 to 20 in the last quarters of 2022 and early 2023, before a modest recovery towards the final quarter analyzed (September 2023) at 21.98. This pattern suggests some volatility but an ongoing effort to improve receivables management after the disruptions of 2020.

Average Receivable Collection Period

The average collection period, which inversely relates to the receivables turnover, initially ranged between 19 and 22 days through 2019, reflecting fairly steady collection efficiency.

During 2020, a gradual increase in the collection period was observed, peaking at 34 days by December. This increase corroborates the slower turnover ratios and points to delayed payments or extended credit terms as the business contended with broader economic challenges.

In 2021, the collection period improved significantly, dropping to as low as 14 days in the mid-year quarters, aligning with the stronger turnover measures. This improvement suggests more effective credit control and cash collections during that period.

Following this improvement, some fluctuations occurred in 2022, with the collection period varying between 13 and 24 days, indicating less consistent collection performance. By 2023, the period showed a modest decline again, falling from 23 days in June to 17 days in September, consistent with the partial recovery seen in turnover ratios.

In summary, the data reflect a significant impact on receivables management during the 2020 pandemic period, manifested by decreased turnover ratios and longer collection periods. The company experienced a recovery in 2021, although some volatility remained in subsequent quarters. The trends indicate ongoing adjustments in credit and collection policies aimed at optimizing cash flow efficiency post-pandemic.

Average Inventory Processing Period

The average inventory processing period remained stable at 2 days for the first four quarters, then gradually increased to 3 and 4 days during 2020. From 2021 onwards, it stabilized mostly at 3 to 4 days, indicating a moderate lengthening in inventory turnover time compared to 2019. There are slight fluctuations but overall the period has remained within a narrow range, suggesting consistent inventory management with a slight increase in duration beginning around mid-2020.

Average Receivable Collection Period

The average receivable collection period exhibited more pronounced fluctuations across the period under review. Initially, it ranged between 19 and 22 days in 2019, then increased notably in the second half of 2020 reaching up to 34 days by December 2020. A sharp improvement occurred in 2021 with the period reducing to as low as 14 days in mid-year but lengthened again afterward, reaching around 23 to 24 days in the latter half of 2022 and early 2023. By the most recent quarters measured, the collection period has decreased slightly to around 17 to 18 days. This pattern suggests variability in receivables management efficiency, with periods of both tightening and loosening credit collection efforts.

Operating Cycle

The operating cycle closely follows the trends noted in the inventory processing and receivable collection periods. It started at 21 to 24 days in 2019, increased significantly to 38 days by December 2020, reflecting the extended receivables period. In 2021, the operating cycle shortened substantially to as low as 17 to 20 days, recovering some operational efficiency. Subsequently, the operating cycle lengthened again throughout 2022, peaking near 28 days, before decreasing slightly to around 20 to 21 days in early 2023. These variations indicate shifts in working capital dynamics, influenced primarily by changes in receivables management while inventory processing periods showed less impact.

Summary

The overall analysis reveals relative stability in inventory turnover time with a slight upward drift beginning in 2020. The receivables collection period, however, showed substantial variability with a notable peak at the end of 2020 followed by improvements and then moderate lengthening again. The operating cycle reflects these movements, showing an extended duration during 2020 before temporary improvement in 2021 and a moderate increase in 2022. Recent data suggest some stabilization in receivables efficiency and a modestly improved operating cycle heading into 2023. These patterns may indicate responses to external conditions affecting cash flow management and collection practices over time.

The payables turnover ratio exhibited significant fluctuations over the observed quarters. Initially, the ratio maintained a range between approximately 40 and 51 in 2019, indicating relatively stable management of payables. However, in early 2020, there was a notable spike, with the ratio peaking above 73 in the first half of the year. This peak was followed by a sharp decline throughout the remainder of 2020, reaching a low near 27 by the fourth quarter. The year 2021 saw a moderate recovery, with the ratio stabilizing between the mid-30s and high-30s, but this was followed by a gradual downward trend throughout 2022 and into 2023, fluctuating around the high 20s to low 30s.

Correspondingly, the average payables payment period, expressed in days, demonstrated an inverse relationship to the turnover ratio. In 2019, the payment period consistently hovered around 7 to 9 days. During the first half of 2020, as the turnover ratio peaked, the payment period shortened to approximately 5 days, reflecting faster payments to suppliers. After mid-2020, this period lengthened considerably, peaking at 14 days in the fourth quarter, indicative of slower payments. Throughout 2021, the payment period showed a gradual reduction again, averaging around 9 to 11 days. From 2022 onward, the trend shifted to a lengthening payment period, reaching approximately 14 days in the third quarter of 2022, before slightly decreasing to around 12 to 13 days by the third quarter of 2023.

Payables Turnover Ratio

Experienced a peak in early 2020 followed by a pronounced decline through late 2020.

Moderate recovery and stabilization occurred throughout 2021.

Gradual decreasing trend persisted in 2022 and early 2023.

Average Payables Payment Period (Days)

Initially stable around 7-9 days in 2019.

Shortest periods observed in the first half of 2020, coinciding with the turnover peak.

Subsequent lengthening of payment periods through late 2020.

Periods shortened slightly in 2021 but lengthened again throughout 2022 and into 2023.

Overall, the data indicate that payables management practices underwent considerable adjustments during the observed period. The early 2020 peak in turnover and shortening of payment periods may reflect a strategic choice or external pressures to accelerate payments. The subsequent lengthening of payment periods and decline in turnover ratio suggest greater emphasis on extending payment terms in later periods, potentially to conserve cash or respond to changing market conditions.

The analysis of the quarterly financial data reveals several notable trends in the company's working capital management over the observed periods.

Average Inventory Processing Period

The inventory processing period remained consistently low at around 2 days from early 2019 through the first quarter of 2020. Beginning in mid-2020, the period increased slightly to 3-4 days, stabilizing at this higher level through 2023. This indicates a modest lengthening in the time the company holds inventory before processing, but it remains relatively efficient.

Average Receivable Collection Period

The receivable collection period exhibited notable fluctuations. From 19-22 days during 2019, it spiked sharply to a peak of 34 days at the end of 2020, likely reflecting delayed collections during that period. Following this peak, collection periods shortened considerably in 2021 to as low as 14 days mid-year, then fluctuated moderately between 13 and 24 days through 2023. This suggests variability in customer payment patterns and potentially accelerated receivables collection efforts post-2020.

Average Payables Payment Period

The payment period initially ranged between 5 and 9 days through mid-2020, then increased notably to around 10-14 days from late 2020 onwards. This pattern implies a gradual extension of the company's payment terms or a strategic delay in paying suppliers, which may have been utilized as a cash management strategy especially during more challenging periods.

Cash Conversion Cycle (CCC)

The cash conversion cycle showed considerable variability, reflecting the combined effects of inventory, receivables, and payables management. The CCC was relatively stable at 13-17 days through early 2020 but increased to a peak of 24 days at the end of 2020, corresponding with the spike in receivables and lengthened payables period. Afterward, it improved significantly in 2021, reaching lows around 6-9 days, indicating a more efficient cash cycle. However, there was some increase in CCC again through 2022 and into 2023, though it remained generally below the peaks seen in 2020.

Overall, the data indicates that the company experienced disruptions around 2020, possibly due to external economic conditions, leading to longer receivable collection and payables payment periods and an extended cash conversion cycle. More recently, there appears to be a return toward improved working capital efficiency, with shorter cash conversion cycles and moderated inventory and receivable periods, suggesting effective management adjustments in response to prior challenges.