Lamb Weston Holdings Inc (LW)
Fixed asset turnover
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,461,700 | 5,371,000 | 4,042,200 | 3,669,200 | 3,788,200 |
| Property, plant and equipment | US$ in thousands | 3,578,900 | 2,804,200 | 1,574,800 | 1,518,600 | 1,523,700 |
| Fixed asset turnover | 1.81 | 1.92 | 2.57 | 2.42 | 2.49 |
May 26, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,461,700K ÷ $3,578,900K
= 1.81
The fixed asset turnover ratio for Lamb Weston Holdings Inc has exhibited fluctuations over the past five years. In May 2020, the ratio stood at 2.49, which represents the company's ability to generate revenue from its fixed assets. Over the next two years, there was a decline in the ratio, reaching 2.42 in May 2021 and further dropping to 1.92 in May 2023. However, in the subsequent two years, there was a slight uptick in the fixed asset turnover, reaching 2.57 in May 2022 and 1.81 in May 2024.
A high fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales. Conversely, a lower ratio may suggest underutilization of fixed assets or potential operational inefficiencies. Therefore, Lamb Weston Holdings Inc may need to focus on optimizing the utilization of its fixed assets to improve its operational efficiency and profitability.
Peer comparison
May 26, 2024