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Lamb Weston Holdings (BSP:L1WH34) Debt-to-EBITDA : 3.20 (As of Feb. 2024)


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What is Lamb Weston Holdings Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Lamb Weston Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was R$3,501 Mil. Lamb Weston Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was R$15,751 Mil. Lamb Weston Holdings's annualized EBITDA for the quarter that ended in Feb. 2024 was R$6,017 Mil. Lamb Weston Holdings's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 was 3.20.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Lamb Weston Holdings's Debt-to-EBITDA or its related term are showing as below:

BSP:L1WH34' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.27   Med: 3.3   Max: 4.83
Current: 2.92

During the past 10 years, the highest Debt-to-EBITDA Ratio of Lamb Weston Holdings was 4.83. The lowest was 0.27. And the median was 3.30.

BSP:L1WH34's Debt-to-EBITDA is ranked worse than
58.84% of 1426 companies
in the Consumer Packaged Goods industry
Industry Median: 2.145 vs BSP:L1WH34: 2.92

Lamb Weston Holdings Debt-to-EBITDA Historical Data

The historical data trend for Lamb Weston Holdings's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

Lamb Weston Holdings Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.80 4.83 4.18 4.32 3.16

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
Debt-to-EBITDA 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 2.56 3.40 2.21 2.41 3.20

Competitive Comparison of Lamb Weston Holdings's Debt-to-EBITDA

For the Packaged Foods subindustry, Lamb Weston Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Lamb Weston Holdings's Debt-to-EBITDA falls into.



Lamb Weston Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Lamb Weston Holdings's Debt-to-EBITDA for the fiscal year that ended in May. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1206.969 + 16181.255) / 5503.838
=3.16

Lamb Weston Holdings's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3500.907 + 15751.354) / 6016.58
=3.20

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Feb. 2024) EBITDA data.


Lamb Weston Holdings  (BSP:L1WH34) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Lamb Weston Holdings Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Lamb Weston Holdings's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


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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