Lamb Weston Holdings Inc (LW)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 70,700 | 67,500 | 79,000 | 120,800 | 71,400 | 71,400 | 62,300 | 62,300 | 78,300 | 78,300 | 163,300 | 163,300 | 304,800 | 304,800 | 675,000 | 675,000 | 419,400 | 419,400 | 485,300 | 485,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 781,600 | 716,600 | 695,000 | 720,900 | 743,600 | 743,600 | 736,200 | 736,200 | 766,200 | 766,200 | 725,700 | 725,700 | 724,200 | 724,200 | 500,500 | 500,500 | 508,900 | 508,900 | 449,500 | 449,500 |
| 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 |
| Quick ratio | 0.58 | 0.48 | 0.48 | 0.49 | 0.50 | 0.50 | 0.44 | 0.44 | 0.52 | 0.52 | 0.69 | 0.69 | 0.76 | 0.76 | 1.44 | 1.44 | 1.01 | 1.01 | 1.20 | 1.20 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($70,700K
+ $—K
+ $781,600K)
÷ $1,476,000K
= 0.58
The data indicates that Lamb Weston Holdings Inc.'s quick ratio has experienced notable fluctuations over the period analyzed. Initially, the quick ratio remained relatively stable at approximately 1.20 from August 2022 through November 2022, suggesting a solid ability to meet short-term obligations with its most liquid assets.
Subsequently, there was a significant increase reaching 1.44 as of February 2023, which demonstrates an improvement in liquidity and a higher cushion of liquid assets relative to current liabilities during that period. However, this was followed by a marked decline, with the ratio decreasing to 0.76 in May 2023, and continuing to decline to approximately 0.69 in late August 2023, indicating a reduction in liquidity.
The trend continued with the ratio dropping further to 0.52 by November 2023, and then decreasing again to 0.44 in February 2024, reflecting a tightening liquidity position. Nevertheless, there was a modest recovery observed thereafter, with the ratio increasing to 0.50 by May 2024 and slightly rising to 0.58 by May 2025.
Throughout the analyzed period, the ratio has remained below the more conservative benchmark of 1.0 since mid-2023, implying that the company's liquid assets have, at times, been insufficient to fully cover its current liabilities without relying on inventory or additional operational cash flows.
Overall, the trend suggests periods of strong liquidity complemented by times of declining liquidity, with recent data indicating a moderate liquidity position approaching earlier levels but still below the initial robust levels observed in late 2022.
Peer comparison
May 31, 2025