Lamb Weston Holdings Inc (LW)
Working capital 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 |
| Total current assets | US$ in thousands | 2,032,700 | 2,090,000 | 2,090,000 | 2,127,200 | 2,127,200 |
| Total current liabilities | US$ in thousands | 1,476,000 | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 |
| Working capital turnover | 11.59 | 13.88 | 13.87 | 6.98 | 7.00 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,451,300K ÷ ($2,032,700K – $1,476,000K)
= 11.59
The working capital turnover ratio for Lamb Weston Holdings Inc. exhibits notable fluctuations over the period analyzed. As of May 28, 2023, the ratio stood at 7.00, indicating a moderate level of efficiency in utilizing working capital to generate sales. This ratio slightly declined to 6.98 by May 31, 2023, suggesting a relatively stable but marginal decrease in working capital efficiency over this short interval.
Advancing to May 26, 2024, the ratio experienced a substantial increase to 13.87, nearly doubling from the previous year's figures. This significant rise indicates that the company’s management was able to generate considerably more sales per unit of working capital during this period, reflecting improved operational efficiency or a strategic move that optimized working capital utilization.
By May 31, 2024, the ratio remained virtually unchanged at 13.88, reinforcing the trend of sustained enhancement in working capital efficiency attained in the prior year. However, by May 31, 2025, the ratio declined to 11.59, signaling a reduction in the efficiency of working capital utilization relative to sales. While still elevated compared to the 2023 figures, this decrease may suggest a normalization or slight deterioration in operational efficiency, possibly due to changes in sales volumes, inventory levels, receivables, or payables.
Overall, the trend demonstrates a marked improvement in Lamb Weston Holdings Inc.'s working capital turnover ratio from 2023 to 2024, followed by a modest decline in 2025. This pattern reflects periods of enhanced operational efficiency, with the company able to generate more sales per unit of working capital, though recent data indicates a slight easing of that efficiency.
Peer comparison
May 31, 2025