Lamb Weston Holdings Inc (LW)

Inventory turnover

May 31, 2025 May 31, 2024 May 26, 2024 May 31, 2023 May 28, 2023
Cost of revenue US$ in thousands 5,052,700 4,700,900 5,403,700 3,918,500 4,476,500
Inventory US$ in thousands 1,035,400 1,138,600 1,138,600 932,000 932,000
Inventory turnover 4.88 4.13 4.75 4.20 4.80

May 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,052,700K ÷ $1,035,400K
= 4.88

The inventory turnover ratios for Lamb Weston Holdings Inc. over the specified periods indicate varying levels of inventory efficiency. As of May 28, 2023, the inventory turnover was 4.80, suggesting that the company sold and replenished its inventory approximately 4.8 times within that period. This ratio decreased slightly to 4.20 by May 31, 2023, implying a marginal slowdown in inventory movement during this shorter timeframe.

Moving forward, the ratio experienced an increase to 4.75 as of May 26, 2024, indicating a rebound in inventory turnover and a more efficient management or increased sales activity relative to inventory holdings. However, by May 31, 2024, the ratio declined slightly to 4.13, demonstrating a temporary slowing in inventory turnover, which may be attributable to inventory build-up or slower sales within that period.

By May 31, 2025, the inventory turnover ratio increased again to 4.88, surpassing previous levels and signaling an improvement in inventory management efficiency. This upward trend suggests that the company was able to sell its inventory more quickly relative to its stock levels, which is typically viewed as favorable in terms of liquidity and operational performance.

Overall, the analysis of the inventory turnover ratios over the given periods reveals fluctuations with a tendency toward improved efficiency by May 31, 2025. The ratios remain within a moderate range, indicating a stable inventory management process with periods of both slight slowdown and recovery in turnover rates.


Peer comparison

May 31, 2025

Company name
Symbol
Inventory turnover
Lamb Weston Holdings Inc
LW
4.88
Kraft Heinz Co
KHC
8.29
Lancaster Colony Corporation
LANC
9.67
Treehouse Foods Inc
THS
5.20