Lamb Weston Holdings Inc (LW)
Receivables turnover
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,461,700 | 5,371,000 | 4,042,200 | 3,669,200 | 3,788,200 |
| Receivables | US$ in thousands | 743,600 | 724,200 | 447,300 | 477,900 | 342,100 |
| Receivables turnover | 8.69 | 7.42 | 9.04 | 7.68 | 11.07 |
May 26, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,461,700K ÷ $743,600K
= 8.69
The receivables turnover ratio for Lamb Weston Holdings Inc has fluctuated over the past five years, with values ranging from 7.42 to 11.07. This ratio indicates how efficiently the company is able to collect cash from its credit sales during a specific period. A higher turnover ratio suggests that the company is collecting its accounts receivable more rapidly.
In 2020, the company achieved a high receivables turnover ratio of 11.07, indicating that it collected its accounts receivable more than 11 times during the year. This could imply effective credit policies or strong collections efforts.
In 2021 and 2023, the receivables turnover ratios decreased to 7.68 and 7.42, respectively. This decline may suggest a slowdown in collections or changes in customer payment patterns.
In 2022, the ratio increased to 9.04, showing improvement in the collection of accounts receivable compared to the previous year.
In 2024, the ratio rebounded to 8.69, indicating a positive trend in collecting accounts receivable compared to 2023.
Overall, Lamb Weston Holdings Inc's receivables turnover has exhibited variability over the years, which may reflect factors such as changes in sales volume, credit policies, or customer payment behavior.
Peer comparison
May 26, 2024