Lamb Weston Holdings Inc (LW)
Liquidity ratios
| 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 | May 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.37 |
| Quick ratio | 0.04 | 0.05 | 0.07 | 0.04 | 0.50 | 0.03 | 0.44 | 0.05 | 0.52 | 0.13 | 0.69 | 0.22 | 0.76 | 0.83 | 1.44 | 0.46 | 1.01 | 0.62 | 1.20 | 0.75 |
| Cash ratio | 0.04 | 0.05 | 0.07 | 0.04 | 0.04 | 0.03 | 0.03 | 0.05 | 0.05 | 0.13 | 0.13 | 0.22 | 0.22 | 0.83 | 0.83 | 0.46 | 0.46 | 0.62 | 0.62 | 0.75 |
The current ratio, which measures Lamb Weston Holdings Inc's ability to meet its short-term obligations with its current assets, shows a fluctuating trend over the periods analyzed. The ratio ranges from a high of 2.59 to a low of 1.19, indicating some variability in the company's liquidity position.
On the other hand, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibits significant fluctuations. The ratio ranges between 0.03 and 1.44, showing a wide disparity in the company's ability to cover its short-term liabilities with its most liquid assets.
Lastly, the cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents to cover current liabilities, also displays fluctuating values across the periods. The ratio varies from 0.03 to 0.83, indicating variations in the company's cash position relative to its short-term obligations.
Overall, the liquidity ratios of Lamb Weston Holdings Inc demonstrate fluctuations over the periods analyzed, suggesting potential challenges in consistently meeting short-term commitments with its current and liquid assets. Further analysis and monitoring of the company's liquidity position may be warranted to assess its ability to manage short-term financial obligations effectively.
Additional liquidity measure
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 92.25 | 92.56 | 83.49 | 84.67 | 65.92 | 88.65 | 78.48 | 81.03 | 63.54 | 59.69 | 56.15 | 72.82 | 73.62 | 81.60 | 74.52 | 80.59 | 63.33 | 62.01 | 54.84 | 60.33 |
The cash conversion cycle of Lamb Weston Holdings Inc has shown some fluctuations over the periods analyzed. Starting at 60.33 days on May 31, 2022, the cycle decreased to 54.84 days by August 28, 2022. It then peaked at 80.59 days on November 30, 2022, before gradually improving to 56.15 days on August 27, 2023.
Thereafter, the cycle increased again, reaching 81.03 days on November 30, 2023, and 88.65 days by February 29, 2024. Subsequently, it decreased to 65.92 days on May 26, 2024, but then surged to 92.56 days by November 30, 2024, and remained high at 92.25 days by February 28, 2025.
Overall, the cash conversion cycle measures the time it takes for Lamb Weston Holdings Inc to convert its investments in inventory and other resources into cash flows from sales. The fluctuations observed in the cycle indicate potential challenges or improvements in managing the company's working capital and operational efficiency.