Lamb Weston Holdings Inc (LW)
Financial leverage ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,392,600 | 7,422,800 | 7,452,100 | 7,512,500 | 7,367,000 | 7,367,000 | 7,245,700 | 7,245,700 | 7,045,300 | 7,045,300 | 6,539,600 | 6,539,600 | 6,519,800 | 6,519,800 | 5,087,300 | 5,087,300 | 4,569,600 | 4,569,600 | 4,409,700 | 4,409,700 |
| Total stockholders’ equity | US$ in thousands | 1,737,700 | 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 |
| Financial leverage ratio | 4.25 | 4.54 | 4.56 | 4.09 | 4.12 | 4.12 | 4.12 | 4.12 | 4.22 | 4.22 | 4.35 | 4.35 | 4.62 | 4.62 | 7.12 | 7.12 | 7.97 | 7.97 | 8.65 | 8.65 |
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. demonstrates a notable decreasing trend over the observed period. Starting at a high level of 8.65 on August 28, 2022, and August 31, 2022, the ratio declines steadily over subsequent periods, reflecting a reduction in financial leverage.
By November 27, 2022, the ratio drops to 7.97, indicating a decrease in the company's reliance on debt relative to its equity. This downward trend persists through early 2023, with the ratio reaching approximately 7.12 on February 26 and February 28, 2023. The reduction continues into mid-2023, with the ratio falling further to 4.62 as of May 28, 2023, maintaining this level through August 27 and August 31, 2023.
From late 2023 onward, the leverage ratio stabilizes at around 4.22 to 4.56, with the latest data points indicating a slight increase to 4.56 on November 30, 2024, and a marginal decrease to approximately 4.25 by May 31, 2025. Overall, this pattern suggests a consistent deleveraging trajectory, indicating that Lamb Weston Holdings Inc. has been systematically reducing its reliance on debt financing relative to equity over the period analyzed.
This decreasing ratio typically signals an improving financial stability, reduced financial risk, and potentially a strategic shift towards stronger equity positioning or improved cash flows that enable debt repayment. The fluctuation within a relatively narrow range in recent periods implies a stable capital structure with a modest level of leverage.
Peer comparison
May 31, 2025