Lamb Weston Holdings Inc (LW)

Cash ratio

May 26, 2024 May 28, 2023 May 29, 2022 May 30, 2021 May 31, 2020
Cash and cash equivalents US$ in thousands 71,400 304,800 525,000 783,500 1,364,000
Short-term investments US$ in thousands 310,000
Total current liabilities US$ in thousands 1,624,100 1,360,200 699,100 618,200 1,024,900
Cash ratio 0.04 0.22 0.75 1.77 1.33

May 26, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($71,400K + $—K) ÷ $1,624,100K
= 0.04

The cash ratio of Lamb Weston Holdings Inc has experienced a significant decrease over the past five years. In particular, the ratio dropped from 1.33 in May 2020 to 0.04 in May 2024. This downward trend indicates that the company's ability to cover its short-term liabilities solely with its cash holdings has weakened considerably. A cash ratio of 0.04 in May 2024 suggests that for every dollar of current liabilities, the company only has $0.04 in cash available, indicating a potential liquidity risk. Further analysis and monitoring of the company's cash management practices and liquidity position would be warranted to assess the sustainability of its financial health.


Peer comparison

May 26, 2024