Lamb Weston Holdings Inc (LW)
Current ratio
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,090,000 | 2,127,200 | 1,659,600 | 1,781,700 | 2,302,600 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,360,200 | 699,100 | 618,200 | 1,024,900 |
| Current ratio | 1.29 | 1.56 | 2.37 | 2.88 | 2.25 |
May 26, 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 exhibited a declining trend over the past five years, decreasing from 2.25 in May 2020 to 1.29 in May 2024. This indicates that the company's current assets may not be as sufficient to cover its current liabilities as they were in the previous years.
A current ratio of 1.29 in May 2024 implies that for every dollar of current liabilities, Lamb Weston Holdings Inc only has $1.29 of current assets available to meet these obligations. While a current ratio above 1 generally indicates a company is able to cover its current liabilities, a value of 1.29 suggests a relatively lower liquidity position compared to the previous years.
It is important for stakeholders to closely monitor the company's liquidity position to ensure that Lamb Weston Holdings Inc can meet its short-term obligations as they come due, especially in the context of the declining current ratio trend observed.
Peer comparison
May 26, 2024