Lamb Weston Holdings Inc (LW)

Days of sales outstanding (DSO)

Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 May 26, 2024 Feb 29, 2024 Feb 25, 2024 Nov 30, 2023 Nov 26, 2023 Aug 31, 2023 Aug 27, 2023 May 31, 2023 May 28, 2023 Feb 28, 2023 Feb 26, 2023 Nov 30, 2022 Nov 27, 2022 Aug 31, 2022 Aug 28, 2022 May 31, 2022
Receivables turnover 8.41 8.95 8.82 8.68 7.56 9.85 9.20 9.75
DSO days 43.41 40.79 41.37 42.04 48.26 37.04 39.68 37.43

February 28, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The Days of Sales Outstanding (DSO) ratio measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is efficient in collecting payments from customers, while a higher DSO may suggest potential issues with receivables management.

Analyzing the DSO data for Lamb Weston Holdings Inc from May 31, 2022, to February 28, 2025, we observe fluctuations in the number of days it takes the company to collect its sales:

1. The DSO for August 28, 2022, and February 26, 2023, stands at 37.43 days and 37.04 days, respectively, indicating consistent collection efficiency during these periods.

2. Notably, the DSO increases to 48.26 days on May 28, 2023, suggesting a slower collection of accounts receivable during this period.

3. The DSO improves to 41.37 days on November 26, 2023, indicating better accounts receivable management compared to the previous period.

4. Subsequently, on February 25, 2024, the DSO decreases further to 40.79 days, signaling improved efficiency in collecting sales.

5. The DSO increases to 43.41 days on May 26, 2024, indicating a slight delay in collecting accounts receivable compared to the previous period.

6. Beyond May 26, 2024, the data does not provide specific DSO values, suggesting a lack of available information for further analysis.

In conclusion, the fluctuating DSO values for Lamb Weston Holdings Inc over the analyzed period indicate variations in the company's efficiency in collecting accounts receivable. It is essential for investors and stakeholders to monitor these trends to assess the effectiveness of the company's receivables management practices.


Peer comparison

Feb 28, 2025