Lamb Weston Holdings Inc (LW)
Current ratio
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,032,700 | 2,090,000 | 2,090,000 | 2,127,200 | 2,127,200 |
| Total current liabilities | US$ in thousands | 1,476,000 | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 |
| Current ratio | 1.38 | 1.29 | 1.29 | 1.56 | 1.56 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,032,700K ÷ $1,476,000K
= 1.38
The analysis of Lamb Weston Holdings Inc's current ratio over the specified periods indicates fluctuations in the company's short-term liquidity position. As of May 28, 2023, and May 31, 2023, the current ratio was consistently 1.56, reflecting a relatively robust liquidity position wherein current assets were approximately 1.56 times the current liabilities.
However, by May 26, 2024, the current ratio declined to 1.29, representing a noticeable decrease in liquidity compared to the prior year. This reduction suggests that the company's ability to meet short-term obligations using its current assets has diminished, potentially due to either a decrease in current assets, an increase in current liabilities, or a combination of both.
Subsequently, the ratio maintained at 1.29 as of May 31, 2024, indicating stability in the liquidity position during this period. By May 31, 2025, the current ratio increased modestly to 1.38, signaling an improvement in the company's liquidity position relative to the previous year, although it remains below the levels observed in 2023.
Overall, the trend demonstrates a weakening in short-term liquidity from 2023 to 2024, followed by a partial recovery in 2025. While a current ratio above 1 generally indicates that a company can meet its short-term liabilities, the decline from 1.56 to 1.29 warrants attention, as it may reflect changing operational or financial conditions that could impact liquidity sustainability in the near term.
Peer comparison
May 31, 2025