Lamb Weston Holdings Inc (LW)
Financial leverage ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,367,000 | 7,367,000 | 6,519,800 | 6,519,800 | 4,139,800 |
| Total stockholders’ equity | US$ in thousands | 1,787,800 | 1,787,800 | 1,411,300 | 1,411,300 | 360,500 |
| Financial leverage ratio | 4.12 | 4.12 | 4.62 | 4.62 | 11.48 |
May 31, 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 decreased steadily over the years, reflecting a strong improvement in the company's capital structure and debt management. As of May 31, 2022, the financial leverage ratio was relatively high at 11.48, indicating a higher level of debt relative to equity. However, by May 28, 2023, the ratio decreased significantly to 4.62, signaling a reduction in the company's financial risk and more balanced capitalization.
Maintaining this trend, the financial leverage ratio remained stable at 4.62 as of May 31, 2023. By May 26, 2024, the ratio decreased further to 4.12, demonstrating continued efforts by Lamb Weston Holdings Inc to decrease its reliance on debt financing and strengthen its financial position. As of May 31, 2024, the financial leverage ratio remained at 4.12, indicating a sustainable and prudent approach to managing the company's capital structure.
Overall, the decreasing trend in Lamb Weston Holdings Inc's financial leverage ratio portrays a positive picture of the company's ability to manage its debt levels effectively and optimize its capital structure for long-term stability and growth.
Peer comparison
May 31, 2024