Lamb Weston Holdings Inc (LW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,787,800 | 1,411,300 | 360,500 | 480,600 | 240,000 |
| ROE | 40.58% | 71.49% | 55.73% | 66.13% | 152.46% |
May 26, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $725,500K ÷ $1,787,800K
= 40.58%
Lamb Weston Holdings Inc.'s Return on Equity (ROE) has shown a fluctuating trend over the past five years, ranging from a high of 152.46% in May 2020 to a low of 40.58% in May 2024. The ROE of 71.49% in May 2023 was notably higher compared to the two subsequent years. This indicates that the company's ability to generate profit from shareholders' equity has varied significantly over the years.
A high ROE can suggest that the company effectively utilizes its equity to generate profits, potentially indicating efficient operations and strong financial performance. On the other hand, a declining ROE over time, as seen in Lamb Weston's case, may raise concerns about the company's profitability and efficiency in managing shareholders' equity.
It is essential to analyze the factors influencing Lamb Weston's ROE fluctuations, such as changes in net income, total equity, or financial leverage, to gain a deeper understanding of the company's financial performance and future prospects. Additional context and in-depth financial analysis would be necessary to assess the implications of these ROE variations accurately.
Peer comparison
May 26, 2024