Lamb Weston Holdings Inc (LW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Lamb Weston Holdings Inc, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, consistently display a value of 0.00 across multiple reporting periods. This suggests that the company has not used debt financing to fund its operations relative to its total assets, total capital, and shareholders' equity.
However, the financial leverage ratio has experienced fluctuations over the periods analyzed, ranging from 4.12 to 34.91. A higher financial leverage ratio indicates a higher level of financial risk as the company relies more heavily on debt to finance its operations. The notable increase in the financial leverage ratio in some periods, reaching values as high as 34.91, could be a cause for concern as it may indicate increased financial risk and vulnerability to economic downturns or interest rate fluctuations.
Overall, while the debt-related ratios suggest a conservative approach to debt financing by Lamb Weston Holdings Inc, the fluctuating financial leverage ratio calls for closer monitoring of the company's debt levels and financial risk management practices to ensure long-term solvency and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.84 | 8.10 | 9.14 | 9.20 | 8.08 | 8.20 | 6.90 | 3.40 | 2.76 | 2.47 | 2.22 | 3.45 | 4.01 | 4.24 | 7.03 | 14.16 | 81.90 | 24.42 | 12.94 | 8.52 |
The interest coverage ratio for Lamb Weston Holdings Inc over the past several quarters has exhibited some variability. Generally, a higher interest coverage ratio indicates a company's ability to comfortably meet its interest obligations.
In the most recent quarter, ending May 26, 2024, the interest coverage ratio stood at 7.84, indicating that the company's operating income was 7.84 times its interest expense, reflecting a healthy ability to cover interest payments. This was a slight decrease from the previous quarter's ratio of 8.10.
Looking back further, the interest coverage ratio has fluctuated, with a peak of 81.90 in the third quarter of 2019 and a low of 2.22 in the first quarter of 2022. The significant increase in the interest coverage ratio in the third quarter of 2019 may suggest improved profitability and operational efficiency during that period.
It is worth noting that the interest coverage ratio dropped notably in the second and third quarters of 2022, possibly indicating increased financial strain or higher interest expenses during those periods. However, the ratio has since shown signs of recovery, reaching 9.20 in the quarter ending August 27, 2023.
Overall, while Lamb Weston Holdings Inc has demonstrated varying levels of interest coverage over the quarters, the company's recent ratios have generally been above 2.0, suggesting a reasonable ability to meet its interest payment obligations. Analysts may want to further investigate the factors driving the fluctuations in the interest coverage ratio to assess the company's financial health and sustainability.