Lamb Weston Holdings Inc (LW)
Financial leverage ratio
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,392,600 | 7,367,000 | 7,367,000 | 6,519,800 | 6,519,800 |
| Total stockholders’ equity | US$ in thousands | 1,737,700 | 1,787,800 | 1,787,800 | 1,411,300 | 1,411,300 |
| Financial leverage ratio | 4.25 | 4.12 | 4.12 | 4.62 | 4.62 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,392,600K ÷ $1,737,700K
= 4.25
The financial leverage ratio of Lamb Weston Holdings Inc. exhibits notable fluctuations over the observed period. As of May 28, 2023, and May 31, 2023, the ratio stood at 4.62, indicating that the firm employed significant leverage, with debt magnifying the equity base by approximately 4.62 times. By the subsequent year, on May 26, 2024, and May 31, 2024, the ratio declined to 4.12, reflecting a reduction in leverage, potentially through debt repayment or asset revaluation leading to a lower debt-to-equity proportion. Looking forward to May 31, 2025, the ratio slightly increased to 4.25, suggesting a marginal reacceleration in leverage, although it remains below the levels observed in 2023. Overall, the trend indicates a decrease in financial leverage from 2023 to mid-2024, followed by a modest uptick towards 2025, implying a cautious approach to leverage management during this interval.
Peer comparison
May 31, 2025