Lamb Weston Holdings Inc (LW)
Inventory turnover
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,052,700 | 4,943,200 | 5,233,600 | 4,965,100 | 4,908,500 | 4,941,000 | 4,981,700 | 5,092,900 | 5,196,100 | 5,255,100 | 5,337,600 | 5,027,600 | 4,671,600 | 4,251,000 | 3,745,600 | 3,742,100 | 3,723,400 | 3,727,400 | 3,740,900 | 3,622,600 |
| Inventory | US$ in thousands | 1,035,400 | 1,249,300 | 1,327,200 | 1,135,700 | 1,138,600 | 1,138,600 | 1,210,000 | 1,210,000 | 1,153,600 | 1,153,600 | 872,900 | 872,900 | 932,000 | 932,000 | 837,400 | 837,400 | 822,100 | 822,100 | 635,500 | 635,500 |
| Inventory turnover | 4.88 | 3.96 | 3.94 | 4.37 | 4.31 | 4.34 | 4.12 | 4.21 | 4.50 | 4.56 | 6.11 | 5.76 | 5.01 | 4.56 | 4.47 | 4.47 | 4.53 | 4.53 | 5.89 | 5.70 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,052,700K ÷ $1,035,400K
= 4.88
The inventory turnover ratios for Lamb Weston Holdings Inc. over a series of reporting periods demonstrate notable fluctuations that warrant detailed analysis. The ratio began at 5.70 on August 28, 2022, and experienced an upward trend reaching a peak of 6.11 on August 31, 2023. This increase indicates a period during which inventory was sold and replaced more frequently, suggesting improved inventory management and potentially higher sales efficiency during this timeframe.
Following this peak, the ratio declined sharply to 4.56 on November 26, 2023, reflecting a slowdown in inventory turnover or an accumulation of inventory relative to sales. The subsequent ratio continued to decrease slightly to 4.50 by November 30, 2023, and further declined to 4.21 and 4.12 on February 25 and February 29, 2024, respectively. These reductions imply a period of reduced inventory turnover, possibly due to decreased sales velocity, increased inventory holdings, or operational adjustments.
From this low point, the ratios show a modest recovery, reaching 4.34 and 4.31 on May 26 and May 31, 2024. The ratio remained relatively stable through August 31, 2024, at 4.37, before declining again to 3.94 by November 30, 2024. A slight increase occurred through the early part of 2025, with ratios rising to 3.96 on February 28, 2025, and further to 4.88 on May 31, 2025, indicating some improvement in inventory management or sales activity.
Overall, the data indicates a cyclical pattern of inventory turnover, with an initial period of improvement followed by a significant decline, and subsequent partial recovery. The periods of lower inventory turnover ratios suggest phases of inventory buildup or slower sales, whereas higher ratios during 2022 and 2023 reflect more efficient inventory management. Continuous monitoring of these ratios will be essential to assess whether the company maintains balanced inventory levels aligned with sales performance.
Peer comparison
May 31, 2025
May 31, 2025