Lamb Weston Holdings Inc (LW)
Current ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,090,000 | 2,090,000 | 2,127,200 | 2,127,200 | 1,659,600 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 | 699,100 |
| Current ratio | 1.29 | 1.29 | 1.56 | 1.56 | 2.37 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,090,000K ÷ $1,624,100K
= 1.29
The current ratio of Lamb Weston Holdings Inc has shown a gradual decline over the years, from 2.37 as of May 31, 2022, to 1.29 as of May 31, 2024. This indicates a potential deterioration in the company's short-term liquidity position and ability to meet its current liabilities using its current assets. A current ratio below 1 would typically raise concerns about the company's ability to cover its short-term obligations. It is important for the company to closely monitor and manage its current assets and liabilities to ensure a healthy liquidity position moving forward.
Peer comparison
May 31, 2024