Lamb Weston Holdings Inc (LW)
Receivables turnover
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,451,300 | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 |
| Receivables | US$ in thousands | 781,600 | 743,600 | 743,600 | 724,200 | 724,200 |
| Receivables turnover | 8.25 | 8.70 | 8.69 | 7.39 | 7.42 |
May 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,451,300K ÷ $781,600K
= 8.25
The receivables turnover ratio for Lamb Weston Holdings Inc demonstrates notable variation over the period from May 2023 to May 2025. Specifically, as of May 28, 2023, the ratio stood at 7.42, which slightly declined to 7.39 by May 31, 2023. This indicates a marginal decrease in the efficiency with which the company collected its receivables during this brief interval.
In the subsequent year, there was a significant improvement in receivables turnover, with the ratio increasing to 8.69 on May 26, 2024, and maintaining a similar level at 8.70 on May 31, 2024. This suggests a notable enhancement in collection efficiency, implying that the company was able to collect its receivables approximately 8.7 times annually, reflecting a shorter average collection period and potentially better credit management or higher cash flow velocity.
Moving into the following year, the ratio slightly declined to 8.25 as of May 31, 2025. While still higher than the figures from May 2023, this indicates a minor reduction in receivables collection efficiency compared to the previous year, though the ratio remains relatively stable and indicative of good receivable management.
Overall, the trends in the receivables turnover ratio suggest that Lamb Weston Holdings Inc experienced a period of improved collection efficiency in the year leading up to May 2024. The slight decrease afterward may warrant ongoing monitoring but does not signal a significant deterioration in receivable management. The ratios reflect a generally effective credit and collection process, with fluctuations that are within typical operating variability.
Peer comparison
May 31, 2025