Lamb Weston Holdings Inc (LW)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 665,100 | 1,065,300 | 1,065,300 | 882,100 | 882,100 |
| Total assets | US$ in thousands | 7,392,600 | 7,367,000 | 7,367,000 | 6,519,800 | 6,519,800 |
| Operating ROA | 9.00% | 14.46% | 14.46% | 13.53% | 13.53% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $665,100K ÷ $7,392,600K
= 9.00%
The analysis of Lamb Weston Holdings Inc.'s operating return on assets (operating ROA) over the specified periods indicates a fluctuating trend in the company's efficiency in generating operating income from its assets. As of May 28, 2023 and May 31, 2023, the operating ROA was consistent at 13.53%, reflecting a stable level of operational performance relative to asset utilization during this timeframe.
By May 26, 2024, the operating ROA had increased to 14.46%, representing an improvement of approximately 0.93 percentage points from the previous year-end. This rise suggests enhanced operational efficiency or an increase in operating income relative to the asset base within that period.
However, by May 31, 2025, there was a notable decline in operating ROA to 9.00%. This substantial decrease of 5.46 percentage points indicates a significant reduction in operating income relative to assets. Such a decline may be attributable to various factors such as increased operating expenses, lower sales efficiency, or changes in asset composition or utilization.
Overall, the trend reflects a period of growth followed by a pronounced decline, signaling potential challenges in maintaining operational efficiency and profitability relative to assets. Further analysis of underlying factors, including asset management, cost structures, and sales performance, would be necessary to fully understand the drivers behind these changes.
Peer comparison
May 31, 2025