Lamb Weston Holdings (Lamb Weston Holdings) Interest Coverage

: 6.27 (As of Feb. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Lamb Weston Holdings's Operating Income for the three months ended in Feb. 2024 was $224 Mil. Lamb Weston Holdings's Interest Expense for the three months ended in Feb. 2024 was $-36 Mil. Lamb Weston Holdings's interest coverage for the quarter that ended in Feb. 2024 was 6.27. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Lamb Weston Holdings's Interest Coverage or its related term are showing as below:

LW' s Interest Coverage Range Over the Past 10 Years
Min: 2.76 Med: 7.16 Max: 64.95
Current: 8.1

LW's Interest Coverage is ranked worse than
50.55% of 1375 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs LW: 8.10

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Lamb Weston Holdings Interest Coverage Historical Data

The historical data trend for Lamb Weston Holdings's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Lamb Weston Holdings Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Interest Coverage

6.24

5.16

4.01

2.76

8.08

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
Interest Coverage																10.32	5.70	10.53	10.50	6.27

Competitive Comparison

For the Packaged Foods subindustry, Lamb Weston Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Lamb Weston Holdings's Interest Coverage falls into.

Lamb Weston Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Lamb Weston Holdings's Interest Coverage for the fiscal year that ended in May. 2023 is calculated as

Here, for the fiscal year that ended in May. 2023, Lamb Weston Holdings's Interest Expense was $-109 Mil. Its Operating Income was $882 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,248 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2023 )	/	Interest Expense (A: May. 2023 )
	=	-1	*	882.1	/	-109.2
	=	8.08

Lamb Weston Holdings's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, Lamb Weston Holdings's Interest Expense was $-36 Mil. Its Operating Income was $224 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,175 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2024 )	/	Interest Expense (Q: Feb. 2024 )
	=	-1	*	223.9	/	-35.7
	=	6.27

The higher the ratio, the stronger the company's Financial Strength is.

Lamb Weston Holdings (NYSE:LW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Lamb Weston Holdings Interest Coverage Related Terms

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

Lamb Weston Holdings (Lamb Weston Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lamb Weston Holdings Inc (NYSE:LW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

0L5:Germany 0L5:Germany L1WH34:Brazil

Address

599 S. Rivershore Lane, Eagle, ID, USA, 83616

Website

https://www.lambweston.com

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.

Executives

William G Jurgensen	director
Eryk J Spytek	officer: See Remarks	599 S. RIVERSHORE LANE, EAGLE ID 83616
Rita Fisher	director	1900 W. FIELD COURT, LAKE FOREST IL 60045
Sukshma Rajagopalan	officer: Chief Info and Digital Officer	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Marc Schroeder	officer: President, International	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Sharon L. Miller	officer: Senior Vice President	599 S. RIVERSHORE LANE, EAGLE ID 83616
Gregory W Jones	officer: Vice President and Controller	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Bernadette M Madarieta	officer: Vice President and Controller	599 S. RIVERSHORE LANE, EAGLE ID 83616
Michael Jared Smith	officer: SVP, Growth & Strategy	599 S. RIVERSHORE LANE, EAGLE ID 83616
Gerardo Scheufler	officer: SVP, Chief Supply Chain Off	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Steven J Younes	officer: CHIEF HUMAN RESOURCES OFFICER	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
John C Hatto	officer: Senior Vice President	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Robert A Niblock	director	1605 CURTIS BRIDGE ROAD, WILKESBORO NC 28697
Peter J Bensen	director	MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Thomas P. Werner	director, officer: President	C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616