Lamb Weston Holdings Inc (LW)
Return on total capital
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 443,100 | 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 | 539,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 360,500 |
| Return on total capital | 27.12% | 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% | 149.68% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $443,100K ÷ ($—K + $1,633,600K)
= 27.12%
Lamb Weston Holdings Inc's return on total capital has shown fluctuations over the observed periods. The return on total capital was notably high at 149.68% as of May 31, 2022, indicating strong profitability in relation to the total capital invested. Subsequently, there was a slight decline in the return on total capital to 110.35% by August 28, 2022, followed by an increase to 114.90% by the end of August 2022.
The trend continued to fluctuate throughout the observation period, with the return on total capital peaking at 150.56% on February 28, 2023. However, the return on total capital saw a significant decrease to 54.03% by May 26, 2024, and further declined to 27.12% as of February 28, 2025.
The declining trend in the return on total capital from the peak levels suggests potential challenges in generating profits relative to the total capital employed by the company. It is essential for investors and stakeholders to monitor this metric closely to assess the company's efficiency in utilizing its capital resources effectively.
Peer comparison
Feb 28, 2025