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Lamb Weston Holdings (BSP:L1WH34) Cash Conversion Cycle : 83.08 (As of Feb. 2024)


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What is Lamb Weston Holdings Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Lamb Weston Holdings's Days Sales Outstanding for the three months ended in Feb. 2024 was 46.7.
Lamb Weston Holdings's Days Inventory for the three months ended in Feb. 2024 was 101.62.
Lamb Weston Holdings's Days Payable for the three months ended in Feb. 2024 was 65.24.
Therefore, Lamb Weston Holdings's Cash Conversion Cycle (CCC) for the three months ended in Feb. 2024 was 83.08.


Lamb Weston Holdings Cash Conversion Cycle Historical Data

The historical data trend for Lamb Weston Holdings's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lamb Weston Holdings Cash Conversion Cycle Chart

Lamb Weston Holdings Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.18 52.63 62.93 56.10 61.62

Lamb Weston Holdings Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 70.63 57.62 59.40 57.97 83.08

Competitive Comparison of Lamb Weston Holdings's Cash Conversion Cycle

For the Packaged Foods subindustry, Lamb Weston Holdings's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lamb Weston Holdings's Cash Conversion Cycle Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Lamb Weston Holdings's Cash Conversion Cycle falls into.



Lamb Weston Holdings Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Lamb Weston Holdings's Cash Conversion Cycle for the fiscal year that ended in May. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=39.9+70.05-48.33
=61.62

Lamb Weston Holdings's Cash Conversion Cycle for the quarter that ended in Feb. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=46.7+101.62-65.24
=83.08

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lamb Weston Holdings  (BSP:L1WH34) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Lamb Weston Holdings Cash Conversion Cycle Related Terms

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Lamb Weston Holdings (BSP:L1WH34) Business Description

Traded in Other Exchanges
Address
599 S. Rivershore Lane, Eagle, ID, USA, 83616
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by French fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Nearly 70% of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single largest customer at 13% of fiscal 2023 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.

Lamb Weston Holdings (BSP:L1WH34) Headlines

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