Lamb Weston Holdings Inc (LW)
Return on total capital
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,065,300 | 882,100 | 444,400 | 474,800 | 556,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,787,800 | 1,411,300 | 360,500 | 480,600 | 240,000 |
| Return on total capital | 59.59% | 62.50% | 123.27% | 98.79% | 232.04% |
May 26, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,065,300K ÷ ($—K + $1,787,800K)
= 59.59%
The return on total capital for Lamb Weston Holdings Inc has fluctuated over the past five years, ranging from 59.59% to 232.04%.
In 2020, the company achieved a high return on total capital of 232.04%, indicating that for every dollar of invested capital, the company generated a significant return. This exceptionally high figure may be attributed to efficient capital allocation and strong operational performance during that year.
However, in the subsequent years, the return on total capital decreased, with the lowest being 59.59% in 2024. This decline suggests that the company may have faced challenges in maintaining or improving its efficiency in utilizing capital to generate returns.
Overall, the trend in the return on total capital indicates some variability in the company's capital utilization efficiency. Further analysis of the company's financial and operational performance would be necessary to understand the factors influencing these fluctuations and to assess the sustainability of its returns.
Peer comparison
May 26, 2024