Lamb Weston Holdings Inc (LW)
Number of days of payables
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.48 | 7.03 | 9.09 | 8.91 | 13.26 | |
| Number of days of payables | days | 56.32 | 51.91 | 40.13 | 40.94 | 27.52 |
May 26, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.48
= 56.32
The number of days of payables for Lamb Weston Holdings Inc has been increasing over the past five years, indicating that the company is taking a longer time to pay its suppliers. This could suggest potential challenges in managing working capital efficiently or negotiating favorable payment terms with suppliers. The trend of increasing days of payables may result in strained relationships with suppliers if not managed effectively. However, it's important to note that a longer payment period can also provide the company with additional liquidity to fund operations or investments. Close monitoring of this metric is essential to ensure a balanced approach to managing payables and maintaining positive supplier relationships.
Peer comparison
May 26, 2024