Lamb Weston Holdings Inc (LW)
Current ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,032,700 | 2,195,100 | 2,190,900 | 2,063,600 | 2,090,000 | 2,090,000 | 2,159,100 | 2,159,100 | 2,080,900 | 2,080,900 | 1,846,300 | 1,846,300 | 2,127,200 | 2,127,200 | 2,117,900 | 2,117,900 | 1,801,100 | 1,801,100 | 1,630,200 | 1,630,200 |
| Total current liabilities | US$ in thousands | 1,476,000 | 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 |
| Current ratio | 1.38 | 1.35 | 1.35 | 1.19 | 1.29 | 1.29 | 1.19 | 1.19 | 1.29 | 1.29 | 1.44 | 1.44 | 1.56 | 1.56 | 2.59 | 2.59 | 1.96 | 1.96 | 2.09 | 2.09 |
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 reveals fluctuations indicating changes in the company's short-term liquidity position. The current ratio initially remained stable at 2.09 in August 2022, then experienced a modest decline to 1.96 by November 2022, suggesting a slight reduction in liquidity but still maintaining a comfortable margin above the typical threshold of 1.0, which signifies that current assets exceed current liabilities.
Throughout early 2023, the current ratio increased significantly to 2.59 by the end of February, indicating improved liquidity and a higher buffer to meet short-term obligations. However, this elevated level was not sustained, as the ratio decreased markedly to 1.56 in May 2023 and further declined to 1.44 by August 2023, approaching a more conservative liquidity level.
The downward trend continued into late 2023, with the current ratio falling to 1.29 in November 2023. The ratio further declined to 1.19 in February 2024, reflecting a decreased capacity to cover current liabilities with current assets. Nevertheless, minor recovery was observed in 2024, with the ratio edging upward to 1.29 by May 2024, before decreasing again to 1.19 in August 2024. A slight improvement is noted later in the year, with the ratio increasing to 1.35 by November 2024 and maintaining at that level into early 2025.
Overall, the trend indicates a gradual decrease in Lamb Weston Holdings Inc.'s current ratio over this period, moving from relatively higher liquidity levels to closer margins, though remaining above 1.0. This suggests that while the company generally maintains sufficient short-term liquidity, it has experienced a diminishing capacity to comfortably cover its current liabilities, warranting ongoing monitoring of liquidity management and working capital strategies.
Peer comparison
May 31, 2025