Lamb Weston Holdings Inc (LW)
Financial leverage ratio
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,367,000 | 7,245,700 | 7,045,300 | 6,539,600 | 6,519,800 | 5,087,300 | 4,569,600 | 4,409,700 | 4,139,800 | 4,100,800 | 4,155,600 | 4,176,300 | 4,209,400 | 4,158,200 | 4,159,100 | 4,272,600 | 4,662,300 | 3,466,200 | 3,466,800 | 3,222,600 |
| Total stockholders’ equity | US$ in thousands | 1,787,800 | 1,758,200 | 1,667,700 | 1,503,000 | 1,411,300 | 714,800 | 573,000 | 510,000 | 360,500 | 392,300 | 365,200 | 427,400 | 480,600 | 451,700 | 408,900 | 332,000 | 240,000 | 270,400 | 201,100 | 92,300 |
| Financial leverage ratio | 4.12 | 4.12 | 4.22 | 4.35 | 4.62 | 7.12 | 7.97 | 8.65 | 11.48 | 10.45 | 11.38 | 9.77 | 8.76 | 9.21 | 10.17 | 12.87 | 19.43 | 12.82 | 17.24 | 34.91 |
May 26, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,367,000K ÷ $1,787,800K
= 4.12
Over the past few years, Lamb Weston Holdings Inc's financial leverage ratio has shown significant fluctuation. The ratio increased steadily from around 4.12 to a peak of 34.91 in August 2020, indicating a substantial increase in the company's reliance on debt to finance its operations.
Since then, the financial leverage ratio has fluctuated, exhibiting some volatility but generally trending downwards. This suggests that the company may have taken steps to reduce its debt levels or improve its equity position to lower its financial leverage.
It's important to note that a higher financial leverage ratio implies higher financial risk for the company, as it indicates a greater proportion of debt in its capital structure. Conversely, a lower ratio signifies a healthier financial position with less reliance on debt.
Overall, monitoring the financial leverage ratio is crucial for stakeholders to assess Lamb Weston Holdings Inc's financial stability, risk profile, and ability to meet its debt obligations over time.
Peer comparison
May 26, 2024