Lamb Weston Holdings Inc (LW)
Return on total capital
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,065,300 | 1,065,300 | 882,100 | 882,100 | 444,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,787,800 | 1,787,800 | 1,411,300 | 1,411,300 | 360,500 |
| Return on total capital | 59.59% | 59.59% | 62.50% | 62.50% | 123.27% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,065,300K ÷ ($—K + $1,787,800K)
= 59.59%
Lamb Weston Holdings Inc has exhibited a strong return on total capital over the past few years, with the ratio ranging from 59.59% to 123.27%. The company's ability to generate returns relative to the total capital employed signifies efficient utilization of resources and sustainable profitability. The gradual decrease in the return on total capital from 123.27% in May 2022 to 59.59% in May 2024 could indicate a normalization of returns or potential changes in the business environment affecting profitability. Overall, the consistent performance of Lamb Weston Holdings Inc in generating returns on total capital reflects a sound financial position and effective management of capital resources.
Peer comparison
May 31, 2024