Lamb Weston Holdings Inc (LW)
Cash ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 70,700 | 67,500 | 79,000 | 120,800 | 71,400 | 71,400 | 62,300 | 62,300 | 78,300 | 78,300 | 163,300 | 163,300 | 304,800 | 304,800 | 675,000 | 675,000 | 419,400 | 419,400 | 485,300 | 485,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,476,000 | 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 |
| Cash ratio | 0.05 | 0.04 | 0.05 | 0.07 | 0.04 | 0.04 | 0.03 | 0.03 | 0.05 | 0.05 | 0.13 | 0.13 | 0.22 | 0.22 | 0.83 | 0.83 | 0.46 | 0.46 | 0.62 | 0.62 |
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. has exhibited a significant declining trend over the analyzed period from August 2022 through May 2025. Initially, at the end of August 2022, the cash ratio stood at 0.62, indicating that the company held a substantial proportion of its current assets in cash and cash equivalents relative to its current liabilities. Throughout late 2022, the cash ratio experienced a moderate decline, decreasing to 0.46 by the end of November 2022.
Starting in early 2023, a notable upward fluctuation occurred, with the ratio reaching 0.83 in February 2023, suggesting a period where the company significantly increased its cash holdings relative to current liabilities. However, this peak was followed by a sharp decline, with the ratio dropping to 0.22 by the end of May 2023. The downward trajectory continued into late 2023 and into 2024, with the ratio diminishing to as low as 0.05 by November 2023 and further decreasing to around 0.03 in February 2024.
Subsequently, the cash ratio showed minimal recovery, reaching 0.07 by August 2024, but remained historically low relative to earlier periods. The ratio displayed slight fluctuations thereafter, maintaining relatively low levels, with values around 0.04 to 0.05 through May 2025.
Overall, the trend indicates a substantial reduction in the company's liquidity buffer in terms of cash and cash equivalents relative to its current liabilities over the observed period. This decline may reflect changes in the company's cash management strategy, operational needs, or shifting liquidity risk. The persistently low cash ratio since mid-2023 suggests increased reliance on other forms of current assets or external financing sources to meet short-term obligations.
Peer comparison
May 31, 2025