Lamb Weston Holdings Inc (LW)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 92.25 | 92.56 | 83.49 | 84.67 | 84.11 | 88.65 | 86.72 | 81.03 | 80.12 | 59.69 | 63.37 | 72.82 | 80.02 | 81.60 | 81.68 | 80.59 | 80.50 | 62.01 | 64.03 | 60.33 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 43.41 | — | 40.79 | — | 41.37 | — | 42.04 | — | 48.26 | — | 37.04 | — | 39.68 | — | 37.43 | — |
| Number of days of payables | days | — | — | — | — | 61.59 | — | 49.03 | — | 57.96 | — | 49.26 | — | 54.66 | — | 44.19 | — | 56.85 | — | 46.62 | — |
| Cash conversion cycle | days | 92.25 | 92.56 | 83.49 | 84.67 | 65.92 | 88.65 | 78.48 | 81.03 | 63.54 | 59.69 | 56.15 | 72.82 | 73.62 | 81.60 | 74.52 | 80.59 | 63.33 | 62.01 | 54.84 | 60.33 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 92.25 + — – —
= 92.25
The cash conversion cycle of Lamb Weston Holdings Inc has shown fluctuations over the periods provided in the data. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory into cash flows from sales.
From May 31, 2022, to February 28, 2025, the cash conversion cycle ranged from a low of 54.84 days to a high of 92.56 days. Generally, a shorter cash conversion cycle is preferred as it indicates that the company is able to efficiently turn its inventory into sales and then into cash.
Lamb Weston Holdings Inc experienced variations in its cash conversion cycle over the period, with some quarters showing improvements and others showing longer cycles. An increasing cash conversion cycle could indicate issues with inventory management, sales collection, or payment processes, which may lead to increased working capital requirements and potential liquidity challenges.
Overall, continual monitoring and analysis of the cash conversion cycle can provide insights into the efficiency of Lamb Weston Holdings Inc's operations and working capital management. Further investigation into the factors contributing to the fluctuations in the cash conversion cycle could help identify areas for improvement and optimization in the company's cash flow management.
Peer comparison
Feb 28, 2025