Lamb Weston Holdings Inc (LW)

Debt-to-capital ratio

May 26, 2024 May 28, 2023 May 29, 2022 May 30, 2021 May 31, 2020
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 1,787,800 1,411,300 360,500 480,600 240,000
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00

May 26, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,787,800K)
= 0.00

The debt-to-capital ratio for Lamb Weston Holdings Inc has consistently been 0.00 over the past five years (from May 2020 to May 2024). This indicates that the company has not used any debt to finance its operations relative to its total capital. A debt-to-capital ratio of 0.00 suggests that Lamb Weston Holdings Inc relies solely on equity to fund its activities, which may imply a conservative financial strategy aimed at minimizing financial risk associated with debt obligations. However, it's important to note that a very low debt-to-capital ratio may also indicate missed opportunities for leveraging debt to potentially enhance shareholder returns. Overall, Lamb Weston Holdings Inc's consistent 0.00 debt-to-capital ratio reflects a stable and cautious approach to capital structure management.


Peer comparison

May 26, 2024

Company name
Symbol
Debt-to-capital ratio
Lamb Weston Holdings Inc
LW
0.00
Kraft Heinz Co
KHC
0.00
Lancaster Colony Corporation
LANC
0.00
Treehouse Foods Inc
THS
0.45