Lamb Weston Holdings Inc (LW)
Working capital turnover
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,461,800 | 6,542,600 | 6,346,900 | 5,882,100 | 5,349,800 | 4,805,400 | 4,506,800 | 4,183,600 | 4,042,200 | 3,898,300 | 3,839,100 | 3,781,900 | 3,669,200 | 3,510,300 | 3,552,500 | 3,675,400 | 3,792,700 | 3,949,200 | 3,938,000 | 3,830,400 |
| Total current assets | US$ in thousands | 2,090,000 | 2,159,100 | 2,080,900 | 1,846,300 | 2,127,200 | 2,117,900 | 1,801,100 | 1,630,200 | 1,659,600 | 1,610,700 | 1,717,800 | 1,735,000 | 1,781,700 | 1,759,400 | 1,785,800 | 1,891,000 | 2,302,600 | 1,097,500 | 1,107,300 | 906,200 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,816,000 | 1,617,800 | 1,285,400 | 1,360,200 | 817,300 | 918,500 | 780,300 | 699,100 | 612,900 | 693,000 | 650,000 | 618,200 | 590,200 | 614,300 | 549,600 | 1,024,900 | 593,700 | 669,400 | 540,100 |
| Working capital turnover | 13.87 | 19.07 | 13.71 | 10.49 | 6.97 | 3.69 | 5.11 | 4.92 | 4.21 | 3.91 | 3.75 | 3.49 | 3.15 | 3.00 | 3.03 | 2.74 | 2.97 | 7.84 | 8.99 | 10.46 |
May 26, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,461,800K ÷ ($2,090,000K – $1,624,100K)
= 13.87
The working capital turnover of Lamb Weston Holdings Inc has shown fluctuations over the past few quarters, indicating changes in the company's efficiency in managing its working capital.
The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue. A higher ratio typically indicates that the company is efficient in managing its working capital.
In the most recent period, as of May 26, 2024, the working capital turnover ratio was 13.87, reflecting a significant increase compared to the previous quarter. This suggests that Lamb Weston Holdings Inc has improved its efficiency in utilizing its working capital to generate sales.
Looking at historical data, we observe a general trend of fluctuating working capital turnover ratios, with peaks and troughs occurring periodically. The company experienced a declining trend from August 2022 to May 2023, indicating a potential inefficiency in managing working capital during that period. However, there was a notable improvement in the ratio from May 2023 to November 2023 before reaching a peak in February 2024.
Overall, the working capital turnover ratio of Lamb Weston Holdings Inc has varied significantly over the past few quarters, suggesting fluctuations in the company's efficiency in managing its working capital. Further analysis and context would be required to understand the specific reasons behind these fluctuations and their implications for the company's financial performance and operations.
Peer comparison
May 26, 2024