Lamb Weston Holdings Inc (LW)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,387,400 | 6,480,200 | 6,337,600 | 6,132,800 | 6,253,000 | 6,381,000 | 6,588,000 | 6,796,600 | 6,759,400 | 6,712,200 | 6,300,500 | 5,896,200 | 5,477,800 | 5,060,200 | 4,932,200 | 4,804,200 | 4,680,800 | 4,554,000 | 4,383,400 | 4,212,800 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | 3,578,900 | — | 3,406,400 | 3,313,600 | 3,173,600 | 3,154,200 | 3,008,600 | 2,954,100 | 2,804,200 | 2,017,800 | 1,867,300 | 1,872,100 | 1,758,200 | 1,803,200 | 1,690,900 | 1,698,200 |
| Fixed asset turnover | — | — | — | — | 1.75 | — | 1.93 | 2.05 | 2.13 | 2.13 | 2.09 | 2.00 | 1.95 | 2.51 | 2.64 | 2.57 | 2.66 | 2.53 | 2.59 | 2.48 |
February 28, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,387,400K ÷ $—K
= —
The fixed asset turnover ratio of Lamb Weston Holdings Inc has fluctuated over the reported periods, ranging from a low of 1.75 to a high of 2.66. This ratio measures the efficiency with which the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
In the earlier periods, the company showed a relatively stable trend with the ratio hovering around 2.5. However, in the more recent periods, there has been a slight decline in the ratio, dropping to below 2.0. This suggests that Lamb Weston Holdings Inc may not be generating revenue as efficiently from its fixed assets compared to the previous periods.
It is important for the company to closely monitor its fixed asset turnover ratio and investigate the reasons behind any declining trend. Possible causes for a decreasing ratio could include underutilization of assets, inefficient production processes, or changes in demand for the company's products. By addressing these issues, Lamb Weston Holdings Inc can work towards improving its operational efficiency and maximizing the returns on its investment in fixed assets.
Peer comparison
Feb 28, 2025