Lamb Weston Holdings Inc (LW)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 443,100 | 655,600 | 861,000 | 872,800 | 965,900 | 1,059,000 | 1,158,400 | 1,257,800 | 1,139,200 | 1,020,600 | 963,600 | 906,600 | 991,400 | 1,076,200 | 966,900 | 857,600 | 721,800 | 586,000 | 562,800 | 539,600 |
| Interest expense (ttm) | US$ in thousands | 176,100 | 169,100 | 161,500 | 152,000 | 140,800 | 129,600 | 124,600 | 119,600 | 123,300 | 127,000 | 122,100 | 117,200 | 109,000 | 100,800 | 101,000 | 101,200 | 101,500 | 101,800 | 101,600 | 101,400 |
| Interest coverage | 2.52 | 3.88 | 5.33 | 5.74 | 6.86 | 8.17 | 9.30 | 10.52 | 9.24 | 8.04 | 7.89 | 7.74 | 9.10 | 10.68 | 9.57 | 8.47 | 7.11 | 5.76 | 5.54 | 5.32 |
February 28, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $443,100K ÷ $176,100K
= 2.52
The interest coverage ratio for Lamb Weston Holdings Inc has exhibited some fluctuations over the periods provided in the data. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.
- The interest coverage ratio ranged from 5.32 to 10.68 during the periods from May 31, 2022, to February 28, 2025.
- The ratio showed an increasing trend from May 31, 2022, to February 28, 2023, peaking at 10.68, indicating an improvement in the company's ability to cover its interest expenses.
- However, there was a slight decline in the ratio from May 28, 2023, to November 30, 2024, falling to as low as 2.52 on February 28, 2025.
- The decreasing trend in the interest coverage ratio towards the latter periods may raise concerns about the company's ability to comfortably cover its interest payments with its operating income.
- It is essential for investors and creditors to monitor the interest coverage ratio closely to assess the company's financial health and its ability to service its debt obligations.
Peer comparison
Feb 28, 2025