Lamb Weston Holdings Inc (LW)
Fixed asset turnover
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 | 4,098,900 |
| Property, plant and equipment | US$ in thousands | — | 3,578,900 | 2,954,100 | 2,804,200 | 1,698,200 |
| Fixed asset turnover | — | 1.81 | 1.81 | 1.92 | 2.41 |
May 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,467,600K ÷ $—K
= —
The fixed asset turnover ratio reflects how efficiently Lamb Weston Holdings Inc is utilizing its fixed assets to generate revenue. The trend analysis of the fixed asset turnover ratio from May 31, 2022 (2.41) to May 31, 2024 (—) indicates a decrease in efficiency in utilizing fixed assets. The ratio has decreased from 2.41 to 1.81 over this period, suggesting that the company is generating less revenue for every dollar invested in fixed assets. This may raise concerns about the company's ability to efficiently utilize its assets to drive revenue growth. Further analysis of the underlying reasons for this decline in efficiency would be necessary to determine if there are operational, strategic, or other issues impacting Lamb Weston Holdings Inc's fixed asset turnover ratio.
Peer comparison
May 31, 2024