Lamb Weston Holdings Inc (LW)
Cash ratio
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 71,400 | 62,300 | 78,300 | 163,300 | 304,800 | 675,000 | 419,400 | 485,300 | 525,000 | 428,600 | 621,900 | 789,700 | 783,500 | 714,300 | 763,900 | 1,032,500 | 1,364,000 | 30,100 | 23,800 | 19,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 298,000 | 310,000 | 303,000 | 291,000 | 275,000 | — | 253,000 | 257,000 | 225,000 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,816,000 | 1,617,800 | 1,285,400 | 1,360,200 | 817,300 | 918,500 | 780,300 | 699,100 | 612,900 | 693,000 | 650,000 | 618,200 | 590,200 | 614,300 | 549,600 | 1,024,900 | 593,700 | 669,400 | 540,100 |
| Cash ratio | 0.04 | 0.03 | 0.05 | 0.13 | 0.22 | 0.83 | 0.46 | 0.62 | 0.75 | 0.70 | 0.90 | 1.67 | 1.77 | 1.72 | 1.72 | 2.38 | 1.33 | 0.48 | 0.42 | 0.45 |
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 fluctuated over the past few quarters, indicating varying levels of liquidity. The cash ratio provides insight into the company's ability to cover its short-term liabilities using its cash and cash equivalents.
In the most recent period ending May 26, 2024, the cash ratio was 0.04, suggesting that the company had only 4 cents in cash and cash equivalents for every dollar of current liabilities. This indicates a relatively low level of liquidity compared to previous periods.
Looking back over the last few quarters, the cash ratio has ranged from as low as 0.03 to as high as 2.38. The significant increase in the cash ratio to 2.38 in August 30, 2020, reflects a substantial improvement in the company's liquidity position, indicating a strong ability to meet short-term obligations using cash on hand.
Overall, the trend in the cash ratio indicates that Lamb Weston Holdings Inc has experienced fluctuations in its liquidity position over the past few quarters. It is important for the company to closely monitor its cash reserves and manage its liquidity effectively to ensure it can meet its short-term financial obligations.
Peer comparison
May 26, 2024