Lamb Weston Holdings Inc (LW)
Working capital turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,451,300 | 6,387,400 | 6,480,200 | 6,337,600 | 6,132,800 | 6,253,000 | 6,381,000 | 6,588,000 | 6,796,600 | 6,759,400 | 6,712,200 | 6,300,500 | 5,896,200 | 5,477,800 | 5,060,200 | 4,932,200 | 4,804,200 | 4,680,800 | 4,554,000 | 4,383,400 |
| Total current assets | US$ in thousands | 2,032,700 | 2,195,100 | 2,190,900 | 2,063,600 | 2,090,000 | 2,090,000 | 2,159,100 | 2,159,100 | 2,080,900 | 2,080,900 | 1,846,300 | 1,846,300 | 2,127,200 | 2,127,200 | 2,117,900 | 2,117,900 | 1,801,100 | 1,801,100 | 1,630,200 | 1,630,200 |
| Total current liabilities | US$ in thousands | 1,476,000 | 1,621,000 | 1,627,000 | 1,730,300 | 1,624,100 | 1,624,100 | 1,816,000 | 1,816,000 | 1,617,800 | 1,617,800 | 1,285,400 | 1,285,400 | 1,360,200 | 1,360,200 | 817,300 | 817,300 | 918,500 | 918,500 | 780,300 | 780,300 |
| Working capital turnover | 11.59 | 11.13 | 11.49 | 19.01 | 13.16 | 13.42 | 18.60 | 19.20 | 14.68 | 14.60 | 11.97 | 11.23 | 7.69 | 7.14 | 3.89 | 3.79 | 5.44 | 5.30 | 5.36 | 5.16 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,451,300K ÷ ($2,032,700K – $1,476,000K)
= 11.59
The analysis of Lamb Weston Holdings Inc.'s working capital turnover ratio over the specified periods reveals notable fluctuations that reflect the company's operational efficiency concerning its working capital management.
Initially, the ratio ranged from approximately 5.16 (August 28, 2022) to 5.44 (November 30, 2022), indicating a consistent level of sales generated per dollar of working capital during this period. Subsequently, a decline was observed, with the ratio decreasing to around 3.79 (February 26, 2023), suggesting a reduction in sales efficiency relative to working capital invested.
From late February 2023 to May 2023, the ratio experienced a significant upward trend, reaching around 7.14 (May 28, 2023). This escalation continued markedly into August 2023, where the ratio peaked at approximately 11.23 (August 27, 2023), and even further to 14.60 (November 26, 2023). Such increases denote a substantial improvement in the company's ability to generate sales from its working capital, implying enhanced operational efficiency or possibly favorable changes in sales volume or receivables and inventory management.
However, the ratio exhibited a decline post-November 2023, falling to around 11.49 (November 30, 2024) and further to approximately 11.13 (February 28, 2025). Despite this decrease, the ratio remains relatively high compared to earlier periods, indicating that while the efficiency has somewhat diminished from its peak, the company continues to sustain a high level of sales generation relative to its working capital.
Overall, the pattern indicates periods of significant improvement in working capital efficiency, particularly during late 2023, followed by a slight normalization in 2024 and 2025. These fluctuations may be influenced by changes in sales cycles, inventory levels, receivables collection, or working capital management strategies, reflecting the company's responsiveness to operational and market conditions over the covered timeframe.
Peer comparison
May 31, 2025