Lamb Weston Holdings Inc (LW)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 70,700 | 71,400 | 71,400 | 304,800 | 304,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,476,000 | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 |
| Cash ratio | 0.05 | 0.04 | 0.04 | 0.22 | 0.22 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($70,700K
+ $—K)
÷ $1,476,000K
= 0.05
The cash ratio of Lamb Weston Holdings Inc. exhibits significant variation over the analyzed period. As of May 28, 2023, and May 31, 2023, the ratio stood at 0.22, indicating that the company held sufficient cash and cash equivalents to cover approximately 22% of its current liabilities, reflecting a moderate liquidity position with some reliance on other current assets to meet short-term obligations. Moving forward to the period around May 26, 2024, and May 31, 2024, the cash ratio declined markedly to 0.04, signifying a substantial reduction to only 4% coverage of current liabilities solely through cash and cash equivalents. This sharp decrease suggests a considerable tightening of cash liquidity or a shift in the company's cash management strategy, perhaps utilizing cash resources for operational purposes, investments, or debt repayment. The ratio remained relatively stable into the following year, with a slight increase to 0.05 as of May 31, 2025, indicating a marginal improvement in cash holdings relative to current liabilities but still reflecting a low liquidity buffer in terms of immediate cash coverage. Overall, the trend demonstrates a notable decline in Lamb Weston Holdings Inc.'s cash ratio over the analyzed period, which may warrant further examination of the company's liquidity management and short-term financial strategies.
Peer comparison
May 31, 2025