Lamb Weston Holdings Inc (LW)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 357,200 | 367,000 | 350,700 | 532,900 | 551,600 | 636,900 | 722,200 | 810,900 | 899,600 | 1,183,400 | 1,467,200 | 1,407,500 | 1,347,800 | 952,100 | 556,400 | 613,200 | 670,000 | 598,900 | 527,800 | 402,500 |
| Total stockholders’ equity | US$ in thousands | 1,737,700 | 1,633,600 | 1,632,800 | 1,836,700 | 1,787,800 | 1,787,800 | 1,758,200 | 1,758,200 | 1,667,700 | 1,667,700 | 1,503,000 | 1,503,000 | 1,411,300 | 1,411,300 | 714,800 | 714,800 | 573,000 | 573,000 | 510,000 | 510,000 |
| ROE | 20.56% | 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% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ 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 period reveals notable fluctuations and a general downward trend since the peak in late 2022. At the end of August 2022, the ROE was approximately 78.92%, indicating a robust level of profitability relative to shareholders’ equity. This figure increased sharply through late November 2022, reaching a high of 116.93% on November 30, 2022, suggesting exceptionally strong investor returns and efficient use of equity capital during that period.
Subsequently, the ROE experienced a decline beginning in early 2023, dropping to 85.79% in late February, and further decreasing to 67.46% by late May 2023. This decline reflects a reduction in profitability or changes in financial leverage or equity base, or a combination thereof. By late August 2023, the ROE had recovered somewhat to approximately 97.62%, indicating renewed profitability or improved operational efficiency.
However, from late 2023 onward, a consistent downward trend was observed. The ROE decreased from about 70.96% in November 2023 to approximately 21.48% by the end of November 2024. The subsequent months showed continued erosion, with the ROE declining further to around 20.56% by May 2025. This sustained decline suggests diminishing profitability or efficiency in generating returns on equity, which could be attributable to various factors such as increased competition, rising operating costs, or challenges related to market conditions or internal operations.
Overall, the data demonstrate that Lamb Weston Holdings Inc. experienced a period of exceptionally high ROE in late 2022, followed by a significant and sustained decline over the subsequent years. Such a trend warrants further investigation into the underlying causes—such as changes in net income, equity structure, industry dynamics, or broader economic factors—to comprehensively evaluate the company's financial health and strategic positioning.
Peer comparison
May 31, 2025