Lamb Weston Holdings Inc (LW)
Working capital turnover
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 4,212,800 |
| Total current assets | US$ in thousands | 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 | 1,659,600 |
| Total current liabilities | US$ in thousands | 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 | 699,100 |
| Working capital turnover | 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 | 4.39 |
February 28, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,387,400K ÷ ($2,195,100K – $1,621,000K)
= 11.13
The working capital turnover of Lamb Weston Holdings Inc has shown fluctuations over the given period. The working capital turnover ratio indicates how efficiently the company utilizes its working capital to generate sales revenue. A higher ratio generally reflects better efficiency in managing working capital.
From May 31, 2022, to August 31, 2023, the working capital turnover steadily increased from 4.39 to 11.97, reaching its peak in August 31, 2023. This indicates that the company was generating sales revenue more efficiently by effectively utilizing its working capital during this period.
However, from November 26, 2023, to February 29, 2024, there was a significant surge in the working capital turnover, reaching a peak of 19.20 in February 25, 2024 before decreasing to 13.16 in May 31, 2024. This sudden increase and subsequent decrease suggest potential fluctuations in the company's working capital management efficiency during these periods.
The working capital turnover ratio for Lamb Weston Holdings Inc ranged from 3.79 to 19.20, indicating varying degrees of efficiency in converting working capital into sales revenue over the analyzed periods. Further analysis and comparison with industry benchmarks would provide additional insights into the company's working capital management performance.
Peer comparison
Feb 28, 2025