Lamb Weston Holdings Inc (LW)
Quick ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 71,400 | 71,400 | 304,800 | 304,800 | 525,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | 743,600 | — | 724,200 | — |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,624,100 | 1,360,200 | 1,360,200 | 699,100 |
| Quick ratio | 0.04 | 0.50 | 0.22 | 0.76 | 0.75 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,400K
+ $—K
+ $—K)
÷ $1,624,100K
= 0.04
The quick ratio of Lamb Weston Holdings Inc has shown fluctuations over the years based on the provided data. As of May 31, 2022, the quick ratio was 0.75, indicating that the company had $0.75 of liquid assets available to cover each $1 of current liabilities. By May 31, 2023, the quick ratio increased slightly to 0.76, suggesting a slight improvement in the company's liquidity position.
However, there was a significant drop in the quick ratio to 0.22 by May 31, 2023, which may raise some concerns about the company's ability to meet its short-term obligations with its readily available assets. The quick ratio improved to 0.50 by May 26, 2024, showing some recovery in liquidity.
Nevertheless, as of May 31, 2024, the quick ratio decreased significantly to 0.04, which could indicate a potential liquidity crisis for the company as its liquid assets may not be sufficient to cover its current liabilities. Overall, the fluctuating quick ratio of Lamb Weston Holdings Inc over the years suggests varying levels of liquidity risk and highlights the importance of closely monitoring the company's ability to meet its short-term financial obligations.
Peer comparison
May 31, 2024