Lamb Weston Holdings Inc (LW)
Financial leverage ratio
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 4,139,800 |
| Total stockholders’ equity | US$ in thousands | 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 | 360,500 |
| Financial leverage ratio | 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 | 11.48 |
February 28, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,422,800K ÷ $1,633,600K
= 4.54
The financial leverage ratio of Lamb Weston Holdings Inc has shown a decreasing trend over the period analyzed. Starting at 11.48 as of May 31, 2022, the ratio steadily declined to 4.54 as of February 28, 2025. This indicates that the company's reliance on debt to finance its operations has reduced over time, which could be viewed positively as lower leverage ratios generally imply lower financial risk. It suggests that the company may be managing its debt levels more effectively and potentially becoming less vulnerable to economic downturns or interest rate fluctuations. However, it is important to note that while lower leverage can be beneficial in terms of stability, too low of a leverage ratio may indicate underutilization of debt and missed opportunities for growth through strategic financing. Monitoring this ratio in conjunction with other financial metrics can provide a more comprehensive view of Lamb Weston's overall financial health and performance.
Peer comparison
Feb 28, 2025