Lamb Weston Holdings Inc (LW)
Operating return on assets (Operating ROA)
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,065,300 | 882,100 | 444,400 | 474,800 | 556,900 |
| Total assets | US$ in thousands | 7,367,000 | 6,519,800 | 4,139,800 | 4,209,400 | 4,662,300 |
| Operating ROA | 14.46% | 13.53% | 10.73% | 11.28% | 11.94% |
May 26, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,065,300K ÷ $7,367,000K
= 14.46%
Operating Return on Assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. A higher operating ROA indicates that the company is efficient in utilizing its assets to generate earnings.
In the case of Lamb Weston Holdings Inc, the trend of the Operating ROA over the past five years shows a general improvement in profitability. The company's Operating ROA has increased from 11.94% in 2020 to 14.46% in 2024, indicating a positive trajectory.
This improvement suggests that Lamb Weston Holdings Inc has been able to enhance its operational efficiency in utilizing its assets to generate profits over the years. It signifies that the company is effectively managing its operations and is becoming more profitable in relation to its total asset base.
Overall, the increasing trend in Lamb Weston Holdings Inc's Operating ROA demonstrates a positive performance in terms of profitability and operational efficiency, which is a favorable indication for investors and stakeholders of the company.
Peer comparison
May 26, 2024