Lamb Weston Holdings Inc (LW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 666,300 | 693,000 | 655,600 | 861,000 | 872,800 | 965,900 | 1,059,000 | 1,158,400 | 1,257,800 | 1,139,200 | 1,020,600 | 963,600 | 906,600 | 991,400 | 1,076,200 | 966,900 | 857,600 | 721,800 | 586,000 | 562,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 38.34% | 42.42% | 40.15% | 46.88% | 48.82% | 54.03% | 60.23% | 65.89% | 75.42% | 68.31% | 67.90% | 64.11% | 64.24% | 70.25% | 150.56% | 135.27% | 149.67% | 125.97% | 114.90% | 110.35% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $666,300K ÷ ($—K + $1,737,700K)
= 38.34%
The analysis of Lamb Weston Holdings Inc.'s return on total capital over the period from August 2022 through May 2025 reveals notable fluctuations and an overall declining trend. Initially, the return on total capital was exceptionally high, with values exceeding 100%, reaching a peak of approximately 149.67% in late November 2022. This suggests that during this period, the company was efficiently generating substantial profits relative to its total capital employed.
Following this peak, the return exhibited a downward trajectory, with significant decreases noted by May 2023, when it declined to around 70.25% and further to 64.24% by the end of May 2023. The decline continued into the subsequent months, with the return on total capital stabilizing in the range of approximately 64% to 68% from late August 2023 through late November 2023. This sustained lower level indicates a moderating of profitability relative to total capital during this period.
Moving into early 2024, the return on total capital showed further signs of decline, falling to approximately 42-46%, with a low point of 40.15% in late November 2024. The subsequent months saw a slight recovery, with the figures rising modestly to about 42-38% by mid-2025. However, the overall trend from the peak in late 2022 suggests a reduction in the company's efficiency in leveraging its total capital to generate returns.
In summary, the data indicates that Lamb Weston Holdings Inc. experienced a period of exceptional profitability in late 2022, which was followed by a steady decline over the subsequent years. The decreasing trend implies increased challenges in maintaining high levels of return on total capital, potentially reflecting changes in operational efficiency, market conditions, or capital structure adjustments.
Peer comparison
May 31, 2025