Lamb Weston Holdings Inc (LW)
Return on equity (ROE)
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 725,600 | 1,094,700 | 1,123,700 | 1,011,800 | 1,008,900 | 542,100 | 473,600 | 403,000 | 200,900 | 234,400 | 193,900 | 258,300 | 317,800 | 250,700 | 296,000 | 339,500 | 365,900 | 477,900 | 507,900 | 486,500 |
| Total stockholders’ equity | US$ in thousands | 1,787,800 | 1,758,200 | 1,667,700 | 1,503,000 | 1,411,300 | 714,800 | 573,000 | 510,000 | 360,500 | 392,300 | 365,200 | 427,400 | 480,600 | 451,700 | 408,900 | 332,000 | 240,000 | 270,400 | 201,100 | 92,300 |
| ROE | 40.59% | 62.26% | 67.38% | 67.32% | 71.49% | 75.84% | 82.65% | 79.02% | 55.73% | 59.75% | 53.09% | 60.44% | 66.13% | 55.50% | 72.39% | 102.26% | 152.46% | 176.74% | 252.56% | 527.09% |
May 26, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $725,600K ÷ $1,787,800K
= 40.59%
The return on equity (ROE) of Lamb Weston Holdings Inc has shown varying trends over the past few quarters. The ROE fluctuated between 40.59% and 82.65% from May 2019 to May 2023 and recorded substantial increases, reaching as high as 527.09% in November 2019. This sharp increase in ROE indicates that the company was able to generate significant profits relative to its shareholders' equity during that period.
However, the ROE started to decline from August 2023 onwards, dropping to 55.73% in May 2024. This decreasing trend suggests that Lamb Weston Holdings Inc may be experiencing challenges in maintaining or growing its profitability in relation to the shareholders' equity.
Overall, while Lamb Weston Holdings Inc demonstrated exceptional profitability in the past with ROE exceeding 100% in several quarters, investors should closely monitor the company's performance to assess its ability to sustain and potentially improve its return on equity in the future.
Peer comparison
May 26, 2024