Lamb Weston Holdings Inc (LW)
Quick ratio
| 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 | US$ in thousands | 71,400 | 62,300 | 78,300 | 163,300 | 304,800 | 675,000 | 419,400 | 485,300 | 525,000 | 428,600 | 621,900 | 789,700 | 783,500 | 714,300 | 763,900 | 1,032,500 | 1,364,000 | 30,100 | 23,800 | 19,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 298,000 | 310,000 | 303,000 | 291,000 | 275,000 | — | 253,000 | 257,000 | 225,000 |
| Receivables | US$ in thousands | 743,600 | 736,200 | 766,200 | 725,700 | 724,200 | 500,500 | 508,900 | 449,500 | 447,300 | 430,600 | 423,200 | 401,300 | 477,900 | 375,600 | 353,200 | 334,800 | 342,100 | 368,800 | 399,700 | 371,100 |
| Total current liabilities | US$ in thousands | 1,624,100 | 1,816,000 | 1,617,800 | 1,285,400 | 1,360,200 | 817,300 | 918,500 | 780,300 | 699,100 | 612,900 | 693,000 | 650,000 | 618,200 | 590,200 | 614,300 | 549,600 | 1,024,900 | 593,700 | 669,400 | 540,100 |
| 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 |
May 26, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,400K
+ $—K
+ $743,600K)
÷ $1,624,100K
= 0.50
The quick ratio of Lamb Weston Holdings Inc has shown varying trends over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
From the data provided, we observe that the quick ratio ranged from a low of 0.44 in February 2024 to a high of 2.99 in August 30, 2020. The quick ratio tends to fluctuate, indicating changes in the company's liquidity position over time.
An ideal quick ratio is typically considered to be 1 or higher, as it suggests that the company has enough liquid assets to cover its short-term liabilities. Lamb Weston's quick ratio has mostly been above 1 in recent quarters, indicating a relatively healthy liquidity position.
However, it is important to note that a quick ratio above 1 does not necessarily mean the company is in a strong financial position, as it does not take into account other factors such as the quality of assets or the timing of cash flows. It is advisable to compare the quick ratio with industry peers or historical trends to get a better understanding of the company's liquidity position.
Peer comparison
May 26, 2024