Lamb Weston Holdings Inc (LW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 4.54 | 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 |
Lamb Weston Holdings Inc has consistently maintained a strong solvency position based on its solvency ratios over the reported periods.
1. Debt-to-assets ratio: The company has a debt-to-assets ratio of 0.00 across all the reported periods. This indicates that Lamb Weston Holdings Inc has no debt relative to its total assets, suggesting a low financial risk and a strong ability to meet its financial obligations using its asset base.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remained at 0.00 throughout the periods analyzed. This ratio also signifies the company's ability to fund its operations without relying much on external debt.
3. Debt-to-equity ratio: The debt-to-equity ratio also stood at 0.00 consistently across all the periods. This implies that Lamb Weston Holdings Inc is financing its operations mostly through equity rather than debt, which can be seen as a positive indicator of financial stability.
4. Financial leverage ratio: The financial leverage ratio shows a declining trend from 11.48 on May 31, 2022, to 4.54 on February 28, 2025. This decreasing trend indicates that the company has been reducing its reliance on debt to finance its operations over time, leading to a lower overall financial risk.
Overall, the solvency ratios of Lamb Weston Holdings Inc reflect a strong financial position with minimal debt levels and a healthy mix of equity financing. This suggests that the company is well-positioned to weather financial challenges and sustain its operations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Lamb Weston Holdings Inc has shown fluctuations over the period from May 2022 to February 2025. The ratio started at 5.32 in May 2022, indicating that the company was generating 5.32 times the amount needed to cover its interest expenses.
Over time, the interest coverage ratio improved, reaching 10.68 in February 2023, which suggests the company's ability to cover its interest payments improved significantly. This high ratio is a positive sign for lenders and investors, indicating that the company has sufficient earnings to cover its interest obligations.
Subsequently, there was a slight decline in the interest coverage ratio, dropping to 5.74 in May 2024 and further decreasing to 2.52 in February 2025. These lower ratios could indicate a potential risk for the company, as it may have more difficulty meeting its interest payments from its operating income.
Overall, while there have been fluctuations in Lamb Weston Holdings Inc's interest coverage ratio, the general trend has shown some variability, with periods of strong performance followed by slight declines. Investors and stakeholders should continue to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.