Lamb Weston Holdings Inc (LW)
Payables turnover
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,403,700 | 5,526,900 | 5,274,100 | 4,851,200 | 4,476,500 | 3,984,600 | 3,818,400 | 3,705,900 | 3,661,400 | 3,553,600 | 3,527,800 | 3,392,000 | 3,203,000 | 3,108,500 | 3,088,100 | 3,157,500 | 3,241,200 | 3,279,800 | 3,237,000 | 3,147,600 |
| Payables | US$ in thousands | 833,800 | 684,100 | 834,500 | 678,500 | 636,600 | 453,100 | 580,600 | 462,700 | 402,600 | 349,300 | 445,400 | 380,400 | 359,300 | 303,600 | 377,400 | 259,300 | 244,400 | 291,900 | 406,000 | 284,900 |
| Payables turnover | 6.48 | 8.08 | 6.32 | 7.15 | 7.03 | 8.79 | 6.58 | 8.01 | 9.09 | 10.17 | 7.92 | 8.92 | 8.91 | 10.24 | 8.18 | 12.18 | 13.26 | 11.24 | 7.97 | 11.05 |
May 26, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,403,700K ÷ $833,800K
= 6.48
The payables turnover ratio for Lamb Weston Holdings Inc has fluctuated over the past 20 quarters, ranging from a low of 6.32 to a high of 13.26. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance within a specific period.
A higher payables turnover ratio generally indicates that the company is managing its payables effectively and is able to pay off its suppliers more frequently. This could be a positive sign of strong supplier relationships and effective working capital management.
On the other hand, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could lead to strained supplier relationships or missed payment terms. However, it could also indicate that the company is taking advantage of available credit terms to manage cash flow more effectively.
In the case of Lamb Weston Holdings Inc, the payables turnover ratio has shown some variability, with some quarters showing higher ratios and others lower. This variability could be influenced by factors such as changes in payment terms with suppliers, fluctuations in purchasing volumes, or changes in the company's overall financial performance.
Overall, a detailed analysis of the payables turnover ratio in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive understanding of Lamb Weston Holdings Inc's efficiency in managing its payables and its overall financial health.
Peer comparison
May 26, 2024