Lamb Weston Holdings Inc (LW)
Inventory turnover
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,700,900 | 5,403,700 | 3,918,500 | 4,476,500 | 3,266,900 |
| Inventory | US$ in thousands | 1,138,600 | 1,138,600 | 932,000 | 932,000 | 574,400 |
| Inventory turnover | 4.13 | 4.75 | 4.20 | 4.80 | 5.69 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,700,900K ÷ $1,138,600K
= 4.13
Based on the data provided for Lamb Weston Holdings Inc, the inventory turnover ratio has been fluctuating over the past few years.
- As of May 31, 2022, the inventory turnover ratio was 5.69, indicating that the company's inventory was sold and replaced approximately 5.69 times during the year.
- By May 28, 2023, the inventory turnover ratio decreased slightly to 4.80, suggesting a slower rate of inventory turnover compared to the previous year.
- However, by May 31, 2023, the ratio further declined to 4.20, indicating a continued decrease in the efficiency of inventory management.
- The inventory turnover ratio improved slightly to 4.75 as of May 26, 2024, but it remained below the initial ratio observed in 2022.
- Finally, by May 31, 2024, the inventory turnover ratio decreased again to 4.13, signaling that the company took longer to sell and replace its inventory during that period.
Overall, the downward trend in Lamb Weston Holdings Inc's inventory turnover ratio suggests potential challenges in managing and selling inventory efficiently, which could impact the company's cash flow and profitability. Further analysis of the underlying reasons for these fluctuations would be necessary to identify any operational issues or market dynamics affecting the firm's inventory management practices.
Peer comparison
May 31, 2024