Lamb Weston Holdings Inc (LW)
Total asset 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 |
| Total assets | US$ in thousands | 7,367,000 | 6,519,800 | 4,139,800 | 4,209,400 | 4,662,300 |
| Total asset turnover | 0.88 | 0.82 | 0.98 | 0.87 | 0.81 |
May 26, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,461,700K ÷ $7,367,000K
= 0.88
The total asset turnover ratio for Lamb Weston Holdings Inc has fluctuated over the past five years, ranging from 0.81 in May 2020 to 0.98 in May 2022. This ratio measures the company's efficiency in generating sales revenue relative to its total assets.
In general, a higher total asset turnover ratio indicates that the company is utilizing its assets more efficiently to generate revenue. Lamb Weston's ratio of 0.88 in May 2024 suggests that the company is generating approximately $0.88 in revenue for every dollar of assets it holds, showing a moderate level of asset utilization efficiency.
Over the five-year period, there have been fluctuations in the ratio, with the highest being in May 2022 at 0.98, indicating that the company was more efficient in generating sales revenue relative to its assets during that period. However, the ratio decreased to 0.81 in May 2020, reflecting a decline in asset utilization efficiency.
It is essential for Lamb Weston Holdings Inc to closely monitor its total asset turnover ratio to ensure optimal utilization of its assets to drive higher sales revenue.
Peer comparison
May 26, 2024