Lamb Weston Holdings Inc (LW)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.29 | 1.19 | 1.29 | 1.44 | 1.56 | 2.59 | 1.96 | 2.09 | 2.37 | 2.63 | 2.48 | 2.67 | 2.88 | 2.98 | 2.91 | 3.44 | 2.25 | 1.85 | 1.65 | 1.68 |
| Quick ratio | 0.50 | 0.44 | 0.52 | 0.69 | 0.76 | 1.44 | 1.01 | 1.20 | 1.39 | 1.40 | 1.51 | 2.29 | 2.54 | 2.36 | 2.29 | 2.99 | 1.66 | 1.10 | 1.02 | 1.14 |
| 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 |
Lamb Weston Holdings Inc's liquidity ratios have fluctuated over the periods provided. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a general upward trend over the past few years, indicating improved liquidity. The current ratio ranged from 1.19 to 3.44, with the latest value being 1.29 as of May 26, 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited variability but generally indicates that the company has enough liquid assets to cover its short-term obligations. The quick ratio ranged from 0.44 to 2.99, with the most recent value at 0.50 as of May 26, 2024.
The cash ratio, the most conservative liquidity measure that considers only cash and cash equivalents against current liabilities, portrays an even more conservative position. The cash ratio ranged from 0.03 to 2.38, with the latest value being 0.04 as of May 26, 2024.
Overall, Lamb Weston Holdings Inc's liquidity ratios suggest that the company has maintained a reasonable ability to meet its short-term obligations, with improvements in its current and quick ratios over the years. However, the downward trend in the quick and cash ratios in some periods may indicate a slight weakening in the company's ability to quickly cover its short-term liabilities with liquid assets. Monitoring these ratios will be crucial to ensure the company's financial health and ability to navigate any potential liquidity challenges.
Additional liquidity measure
| 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 conversion cycle | days | 62.59 | 75.80 | 66.15 | 59.66 | 73.50 | 73.22 | 64.30 | 56.24 | 57.52 | 69.61 | 57.67 | 48.29 | 65.11 | 70.51 | 66.20 | 57.67 | 60.21 | 68.07 | 62.98 | 56.42 |
The cash conversion cycle of Lamb Weston Holdings Inc has shown fluctuations over the past few quarters, ranging from a low of 48.29 days to a high of 75.80 days. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash quickly.
In the most recent quarter, the cash conversion cycle was 62.59 days, indicating that Lamb Weston Holdings Inc took approximately 62.59 days to convert its investments in inventory and other resources into cash flows from sales. This suggests that the company may have experienced challenges in efficiently managing its working capital compared to previous quarters where the cycle was shorter.
Analyzing the trend of the cash conversion cycle over time can provide insights into the company's efficiency in managing its cash flows, inventory levels, and accounts receivable. Management should focus on optimizing the cash conversion cycle to ensure effective working capital management and improve overall financial performance.