Lamb Weston Holdings Inc (LW)
Payables turnover
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,403,700 | 4,476,500 | 3,661,400 | 3,203,000 | 3,241,200 |
| Payables | US$ in thousands | 833,800 | 636,600 | 402,600 | 359,300 | 244,400 |
| Payables turnover | 6.48 | 7.03 | 9.09 | 8.91 | 13.26 |
May 26, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,403,700K ÷ $833,800K
= 6.48
The payables turnover ratio for Lamb Weston Holdings Inc has shown a decreasing trend over the past five years, indicating the company's ability to manage its accounts payable has weakened. In 2020, the payables turnover ratio was the highest at 13.26, suggesting that the company was paying off its suppliers more frequently during that period. However, the ratio has steadily declined in subsequent years, reaching 6.48 in 2024.
A lower payables turnover ratio could indicate delayed payments to suppliers, which might strain the company's relationships with them. It could also suggest inefficient cash flow management or difficulties in managing working capital effectively. Further analysis of the company's financial statements and industry benchmarks would be necessary to understand the underlying reasons for the declining trend in payables turnover.
Peer comparison
May 26, 2024