Lamb Weston Holdings Inc (LW)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 665,100 | 691,800 | 655,600 | 861,000 | 872,800 | 965,900 | 1,059,000 | 1,158,400 | 1,257,800 | 1,139,200 | 1,020,600 | 963,600 | 906,600 | 991,400 | 1,076,200 | 966,900 | 857,600 | 721,800 | 586,000 | 562,800 |
| Total assets | US$ in thousands | 7,392,600 | 7,422,800 | 7,452,100 | 7,512,500 | 7,367,000 | 7,367,000 | 7,245,700 | 7,245,700 | 7,045,300 | 7,045,300 | 6,539,600 | 6,539,600 | 6,519,800 | 6,519,800 | 5,087,300 | 5,087,300 | 4,569,600 | 4,569,600 | 4,409,700 | 4,409,700 |
| Operating ROA | 9.00% | 9.32% | 8.80% | 11.46% | 11.85% | 13.11% | 14.62% | 15.99% | 17.85% | 16.17% | 15.61% | 14.73% | 13.91% | 15.21% | 21.15% | 19.01% | 18.77% | 15.80% | 13.29% | 12.76% |
May 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $665,100K ÷ $7,392,600K
= 9.00%
The analysis of Lamb Weston Holdings Inc's operating return on assets (ROA) over the specified period reveals notable fluctuations and a general downward trend in recent years.
From late August 2022 through the end of November 2022, the operating ROA exhibited an upward trajectory, rising from approximately 12.76% to a peak of 18.77%. This indicates improved operational efficiency and effective utilization of assets during this period. The subsequent increase subsequent to that period continued into early 2023, reaching a high of 21.15% at the end of February 2023, reflecting a period of strong operational performance.
However, starting in late May 2023, a decline in operating ROA is observable. It dropped from 15.21% (May 28, 2023) to 13.91% (May 31, 2023), and further decreased in the following months, reaching 14.73% in August 2023. The trend toward decline persisted through late 2023 and into early 2024, with the operating ROA recorded at 16.17% on November 26, 2023, then rising slightly to 17.85% before decreasing again to approximately 14.62% in February 2024.
This downward movement continues into 2024. The data shows the operating ROA fell to 13.11% in May 2024 and further declined to 11.85% by the end of May 2024. The trend persisted into late 2024 and early 2025, with the figure declining further to 11.46% in August 2024, and eventually reaching a low point of 8.80% in November 2024. The most recent data presented indicates a slight uptick to 9.32% in February 2025, yet it remains below earlier peak levels.
Overall, the company's operating ROA experienced a period of strong performance and efficiency into early 2023, followed by a persistent decline in subsequent periods. The downward trend may reflect various factors such as increased operational costs, changes in asset utilization efficiency, or broader industry and economic influences. The recent partial recovery in early 2025 suggests some stability, although the current levels are substantially lower than the earlier peaks, indicating potential challenges in maintaining prior levels of asset-driven profitability.
Peer comparison
May 31, 2025