Lamb Weston Holdings Inc (LW)
Working capital turnover
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 | 4,098,900 |
| Total current assets | US$ in thousands | 2,090,000 | 2,090,000 | 2,127,200 | 2,127,200 | 1,659,600 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 | 699,100 |
| Working capital turnover | 13.88 | 13.87 | 6.98 | 7.00 | 4.27 |
May 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,467,600K ÷ ($2,090,000K – $1,624,100K)
= 13.88
The working capital turnover ratio of Lamb Weston Holdings Inc has shown a significant upward trend over the analyzed period. Starting from 4.27 on May 31, 2022, the ratio increased to 7.00 on May 28, 2023, and further improved to 6.98 on May 31, 2023. This upward momentum continued with a substantial jump to 13.87 on May 26, 2024, followed by a slight increase to 13.88 on May 31, 2024.
A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales. The steady increase in this ratio suggests that Lamb Weston Holdings Inc is managing its working capital more effectively over time, potentially through better inventory management, accounts receivable collection, and accounts payable payment strategies.
Overall, the rising trend in the working capital turnover ratio reflects improved operational efficiency and effective management of working capital resources by Lamb Weston Holdings Inc during the period under review.
Peer comparison
May 31, 2024