Lindsay Corporation (LNN)
Fixed asset turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 607,074 | 674,084 | 770,743 | 567,646 | 474,692 |
| Property, plant and equipment | US$ in thousands | 112,815 | 99,681 | 94,472 | 91,997 | 79,581 |
| Fixed asset turnover | 5.38 | 6.76 | 8.16 | 6.17 | 5.96 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $607,074K ÷ $112,815K
= 5.38
Lindsay Corporation's fixed asset turnover ratio has exhibited fluctuating trends over the past five years. The company's fixed asset turnover ranged from 5.96 in 2020 to 8.16 in 2022, with a peak performance during the latter year. This indicates that, on average, the company generated $8.16 in revenues for every dollar invested in fixed assets in 2022.
However, in 2023 and 2024, the fixed asset turnover ratio decreased to 6.76 and 5.38, respectively. This implies that the efficiency of utilizing fixed assets to generate revenue declined during these years. It is worth noting that a lower fixed asset turnover ratio may signal inefficiencies in asset utilization or a slowdown in revenue generation relative to the investment in fixed assets.
Overall, although the company experienced fluctuations in its fixed asset turnover ratio over the past five years, it is essential for Lindsay Corporation to assess the underlying factors influencing these variations and implement strategies to improve asset utilization efficiency in the future.
Peer comparison
Aug 31, 2024