Lamb Weston Holdings Inc (LW)

Profitability ratios

Return on sales

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 May 31, 2022
Gross profit margin 22.61% 21.75% 24.23% 25.82% 26.72% 27.56% 28.15% 28.69% 27.43% 26.19% 26.29% 26.36% 28.42% 30.81% 29.08% 27.26% 25.26% 23.17% 22.87% 22.56%
Operating profit margin 10.83% 10.12% 13.59% 14.23% 15.45% 16.60% 17.58% 18.51% 16.85% 15.21% 15.29% 15.38% 18.10% 21.27% 19.60% 17.85% 15.42% 12.87% 12.84% 12.81%
Pretax margin 8.07% 7.63% 11.17% 11.90% 13.34% 14.65% 15.78% 16.99% 15.28% 19.70% 20.16% 20.06% 23.29% 16.69% 14.91% 17.15% 14.69% 13.22% 13.21% 9.76%
Net profit margin 5.75% 5.41% 8.41% 8.99% 10.19% 11.32% 12.31% 13.24% 17.51% 21.86% 22.34% 22.86% 17.38% 11.00% 12.43% 13.95% 12.79% 11.59% 9.18% 6.58%

Lamb Weston Holdings Inc's profitability ratios, based on the provided data, exhibit varying trends over the timeline. The gross profit margin has generally shown a fluctuating pattern, starting at 22.56% in May 2022, peaking at 30.81% in February 2023, and declining to 22.61% in February 2025.

In terms of operating profit margin, the company has experienced ups and downs, with a gradual increase from 12.81% in May 2022 to 21.27% in February 2023, followed by a declining trend to 10.83% in February 2025.

The pretax margin also displays fluctuations, with an initial level of 9.76% in May 2022, reaching a peak of 23.29% in May 2023, and subsequently decreasing to 8.07% by February 2025.

Lastly, the net profit margin shows similar variability, starting at 6.58% in May 2022, peaking at 22.86% in May 2023, and then decreasing to 5.75% by February 2025.

Overall, Lamb Weston Holdings Inc's profitability ratios reflect a mixed performance, with periods of growth and decline in margins over the analyzed period. It would be advisable to further investigate the underlying factors driving these fluctuations to assess the company's financial health and sustainability.


Return on investment

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 May 31, 2022
Operating return on assets (Operating ROA) 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% 13.03%
Return on assets (ROA) 4.94% 4.71% 7.09% 7.49% 8.65% 9.97% 11.19% 12.77% 16.80% 22.44% 21.52% 20.67% 14.60% 10.94% 12.05% 14.66% 13.11% 11.97% 9.13% 6.70%
Return on total capital 27.12% 40.15% 46.88% 48.82% 54.03% 60.23% 65.89% 75.42% 68.31% 67.90% 64.11% 64.24% 70.25% 150.56% 135.27% 149.67% 125.97% 114.90% 110.35% 149.68%
Return on equity (ROE) 22.47% 21.48% 29.01% 30.85% 35.62% 41.08% 46.12% 53.94% 70.96% 97.62% 93.65% 95.50% 67.46% 77.84% 85.79% 116.93% 104.52% 103.49% 78.92% 76.89%

Over the period under review, Lamb Weston Holdings Inc has shown mixed performance in terms of profitability ratios.

1. Operating Return on Assets (Operating ROA):
- The Operating ROA fluctuated during the period, ranging from a low of 11.46% to a high of 21.15%.
- Although there were fluctuations, the Operating ROA generally remained above 10%, indicating that the company generated a solid return from its operating assets.

2. Return on Assets (ROA):
- The ROA also varied significantly over the period, with values falling between 4.71% and 22.44%.
- The ROA showed a declining trend towards the end of the period, dropping from the highest point of 22.44% to 4.94%.

3. Return on Total Capital:
- The Return on Total Capital demonstrated considerable variability, ranging from 27.12% to 150.56%.
- The ratio showed a decreasing trend over the period, with the highest point of 150.56% dropping to 27.12%.

4. Return on Equity (ROE):
- The ROE fluctuated notably, with values ranging from 21.48% to 116.93%.
- There was a general decreasing trend in ROE, with the highest point of 116.93% decreasing to 22.47% by the end of the period.

Overall, Lamb Weston Holdings Inc's profitability ratios exhibit fluctuations and declining trends in some key metrics towards the end of the period. This may indicate potential challenges in maintaining profitability and efficiently utilizing assets and capital in the future.