Lamb Weston Holdings Inc (LW)
Financial leverage ratio
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,367,000 | 6,519,800 | 4,139,800 | 4,209,400 | 4,662,300 |
| Total stockholders’ equity | US$ in thousands | 1,787,800 | 1,411,300 | 360,500 | 480,600 | 240,000 |
| Financial leverage ratio | 4.12 | 4.62 | 11.48 | 8.76 | 19.43 |
May 26, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,367,000K ÷ $1,787,800K
= 4.12
The financial leverage ratio of Lamb Weston Holdings Inc has shown a decreasing trend over the past five years, declining from 19.43 in 2020 to 4.12 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and has been moving towards a more equity-financed capital structure. A lower financial leverage ratio suggests that the company has a lower level of financial risk and is less vulnerable to fluctuations in interest rates or potential debt repayment challenges. This trend indicates a strengthening of the company's financial position and may be viewed positively by investors and creditors. However, it is important to conduct a more in-depth analysis to understand the specific factors driving this change in the financial leverage ratio.
Peer comparison
May 26, 2024