Lamb Weston Holdings Inc (LW)
Net profit margin
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 725,500 | 725,500 | 1,008,900 | 1,008,900 | 200,900 |
| Revenue | US$ in thousands | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 | 4,098,900 |
| Net profit margin | 11.22% | 11.23% | 18.86% | 18.78% | 4.90% |
May 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $725,500K ÷ $6,467,600K
= 11.22%
Net profit margin is a key financial metric that indicates a company's profitability by measuring the percentage of revenue that translates into net income. Looking at the trend in Lamb Weston Holdings Inc's net profit margin over the period from May 31, 2022, to May 31, 2024, we observe fluctuations in the company's profitability.
- As of May 31, 2022, Lamb Weston Holdings Inc had a net profit margin of 4.90%, indicating that for every dollar of revenue generated, the company retained $0.049 as net income.
- Subsequently, the net profit margin saw a significant increase to 18.78% by May 28, 2023, demonstrating a substantial improvement in profitability.
- The positive trend continued with the net profit margin slightly rising to 18.86% by May 31, 2023, reflecting sustained profitability.
- However, there was a notable decline in the net profit margin to 11.23% by May 26, 2024, followed by a marginal decrease to 11.22% by May 31, 2024.
The fluctuations in Lamb Weston Holdings Inc's net profit margin suggest variability in the company's ability to convert revenue into net income over the specified period. It is crucial for the company to closely monitor its operational efficiency and cost management practices to maintain and improve profitability levels going forward.
Peer comparison
May 31, 2024