Lamb Weston Holdings Inc (LW)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 525,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 699,100 |
| Cash ratio | 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 | 0.75 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($67,500K
+ $—K)
÷ $1,621,000K
= 0.04
The cash ratio of Lamb Weston Holdings Inc has shown fluctuations over the period indicated in the data. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, was at 0.75 as of May 31, 2022. This indicates that the company had $0.75 in cash and cash equivalents for every $1 of its current liabilities at that time.
The cash ratio then declined to 0.62 by August 28, 2022, and remained at this level through November 30, 2023. This may suggest a slightly reduced ability to cover short-term liabilities with cash during this period.
The cash ratio saw an improvement to 0.83 as of February 28, 2023, indicating a stronger position in terms of liquidity. However, there was a significant decrease in the cash ratio to 0.22 by May 31, 2023, and further declined to 0.03 by February 29, 2024.
From May 31, 2023, onward, the cash ratio of Lamb Weston Holdings Inc remained relatively low, ranging between 0.03 and 0.07, with a slight increase observed by August 31, 2024, at 0.07.
Overall, the decreasing trend in the cash ratio from 0.75 on May 31, 2022, to 0.04 on February 28, 2025, suggests that the company may have experienced challenges in maintaining adequate cash reserves relative to its short-term liabilities during the period under review. This indicates a potential liquidity concern that may require further analysis and management attention.
Peer comparison
Feb 28, 2025