Lamb Weston Holdings Inc (LW)
Fixed asset turnover
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,461,800 | 6,542,600 | 6,346,900 | 5,882,100 | 5,349,800 | 4,805,400 | 4,506,800 | 4,183,600 | 4,042,200 | 3,898,300 | 3,839,100 | 3,781,900 | 3,669,200 | 3,510,300 | 3,552,500 | 3,675,400 | 3,792,700 | 3,949,200 | 3,938,000 | 3,830,400 |
| Property, plant and equipment | US$ in thousands | 3,578,900 | 3,406,400 | 3,173,600 | 3,008,600 | 2,804,200 | 1,867,300 | 1,758,200 | 1,690,900 | 1,574,800 | 1,556,100 | 1,568,000 | 1,565,700 | 1,518,600 | 1,498,200 | 1,485,200 | 1,511,500 | 1,523,700 | 1,554,000 | 1,552,300 | 1,555,100 |
| Fixed asset turnover | 1.81 | 1.92 | 2.00 | 1.96 | 1.91 | 2.57 | 2.56 | 2.47 | 2.57 | 2.51 | 2.45 | 2.42 | 2.42 | 2.34 | 2.39 | 2.43 | 2.49 | 2.54 | 2.54 | 2.46 |
May 26, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,461,800K ÷ $3,578,900K
= 1.81
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets, such as property, plant, and equipment.
Lamb Weston Holdings Inc's fixed asset turnover ratio has shown fluctuations over the past several quarters, ranging from a low of 1.81 to a high of 2.57. The ratio indicates how efficiently the company is utilizing its fixed assets to generate sales.
A higher fixed asset turnover ratio generally indicates better efficiency in asset utilization, as the company is generating more revenue per dollar of investment in fixed assets.
Analyzing the trend over time, we can see that the fixed asset turnover ratio has generally been increasing, with a few fluctuations in between. This improvement suggests that Lamb Weston Holdings Inc has been able to increase its sales relative to its investment in fixed assets, reflecting improved operational efficiency.
Overall, the upward trend in the fixed asset turnover ratio is a positive signal, indicating that the company is effectively managing and leveraging its fixed assets to drive revenue growth.
Peer comparison
May 26, 2024