Lamb Weston Holdings Inc (LW)
Return on assets (ROA)
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 725,500 | 1,008,900 | 200,900 | 317,800 | 365,900 |
| Total assets | US$ in thousands | 7,367,000 | 6,519,800 | 4,139,800 | 4,209,400 | 4,662,300 |
| ROA | 9.85% | 15.47% | 4.85% | 7.55% | 7.85% |
May 26, 2024 calculation
ROA = Net income ÷ Total assets
= $725,500K ÷ $7,367,000K
= 9.85%
The Return on Assets (ROA) is a key financial ratio that indicates how efficiently a company is utilizing its assets to generate profits. Looking at the historical ROA data of Lamb Weston Holdings Inc, we observe fluctuations over the past five years:
- In May 2024, the ROA was 9.85%, which is a decrease from the previous year's figure of 15.47% in May 2023. This might suggest that the company's profitability relative to its assets has decreased.
- The ROA in May 2023 was higher at 15.47%, indicating that the company was more efficient in generating profits from its assets compared to the other years.
- In May 2022, the ROA was 4.85%, which represents a significant decrease from the previous year, possibly indicating a dip in profitability or less effective asset utilization.
- The ROA in May 2021 was 7.55%, showing a slight increase from the prior year and hinting at improved asset efficiency.
- Lastly, in May 2020, the ROA was 7.85%, slightly higher than the previous year, indicating consistent performance in generating profits relative to the company's assets.
Overall, Lamb Weston Holdings Inc's ROA has shown fluctuations over the past five years, with variations in profitability and asset utilization efficiency. It is crucial for the company to focus on maintaining or improving its ROA to ensure effective management of its assets and sustainable profitability in the future.
Peer comparison
May 26, 2024