Lamb Weston Holdings Inc (LW)
Return on equity (ROE)
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 357,200 | 725,500 | 725,500 | 1,008,900 | 1,008,900 |
| Total stockholders’ equity | US$ in thousands | 1,737,700 | 1,787,800 | 1,787,800 | 1,411,300 | 1,411,300 |
| ROE | 20.56% | 40.58% | 40.58% | 71.49% | 71.49% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $357,200K ÷ $1,737,700K
= 20.56%
The analysis of Lamb Weston Holdings Inc.'s return on equity (ROE) over the specified periods reveals significant fluctuations, indicating notable changes in the company's profitability relative to shareholders' equity. As of May 28, 2023, the ROE was recorded at 71.49%, a figure that remained consistent through May 31, 2023. This high ROE suggests that the company was highly efficient in generating profits from shareholders’ equity during this period.
However, by May 26, 2024, the ROE declined substantially to 40.58%, reflecting a marked decrease in profitability relative to equity over the course of approximately a year. This decline could be attributed to factors such as increased equity base, reduced net income, or a combination of both, which would diminish the overall return generated for shareholders.
Looking further ahead to May 31, 2025, the ROE continued its downward trend, reaching 20.56%. This persistent decline over the two-year span signals potential challenges in maintaining prior levels of profitability or shifts in operational efficiency, profitability margins, or capital structure. The halving of the ROE from its peak in early 2023 suggests an evolving financial environment or internal operational adjustments that may have impacted the company's ability to generate comparable returns on equity.
Overall, the trend indicates a substantial reduction in Lamb Weston Holdings Inc.'s ROE over the analyzed period, transitioning from a peak of approximately 71.49% to around 20.56%. This pronounced decrease warrants further examination into underlying causes, such as changes in net income, equity structure, or operational dynamics, to better understand the factors influencing the company's diminished efficiency in converting shareholders' equity into profits.
Peer comparison
May 31, 2025