Lamb Weston Holdings Inc (LW)
Working capital 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 current assets | US$ in thousands | 2,090,000 | 2,127,200 | 1,659,600 | 1,781,700 | 2,302,600 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,360,200 | 699,100 | 618,200 | 1,024,900 |
| Working capital turnover | 13.87 | 7.00 | 4.21 | 3.15 | 2.96 |
May 26, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,461,700K ÷ ($2,090,000K – $1,624,100K)
= 13.87
Lamb Weston Holdings Inc has demonstrated a consistent improvement in its working capital turnover over the past five fiscal years, indicating efficient management of its working capital. The working capital turnover ratio has significantly increased from 2.96 in 2020 to 13.87 in 2024, reflecting a substantial enhancement in the company's ability to generate revenue relative to its working capital investment.
This improvement suggests that Lamb Weston is utilizing its current assets more effectively to support its day-to-day operations and generate sales. A higher working capital turnover ratio indicates that the company is able to sell its products more frequently during the year using less working capital, which can lead to increased profitability and liquidity.
The trend of increasing working capital turnover is a positive sign of operational efficiency and financial health for Lamb Weston Holdings Inc, showcasing the company's ability to optimize its working capital management over time.
Peer comparison
May 26, 2024