Lamb Weston Holdings Inc (LW)
Cash ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 71,400 | 71,400 | 304,800 | 304,800 | 525,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 | 699,100 |
| Cash ratio | 0.04 | 0.04 | 0.22 | 0.22 | 0.75 |
May 31, 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 shown a declining trend over the past few years. As of May 31, 2022, the cash ratio was 0.75, indicating that the company had $0.75 in cash and cash equivalents for every $1 of current liabilities. However, by May 31, 2024, the cash ratio had decreased significantly to 0.04, suggesting a decrease in the company's ability to cover its short-term liabilities with its available cash resources. This downward trend in the cash ratio raises concerns about the company's liquidity position and its ability to meet its short-term financial obligations effectively. Further monitoring and analysis of Lamb Weston Holdings Inc's cash management practices and overall financial health would be advisable to ensure sustainable operations.
Peer comparison
May 31, 2024