Lindsay Corporation (LNN)
Inventory turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 461,069 | 571,565 | 417,441 | 322,149 | 329,464 |
| Inventory | US$ in thousands | 155,932 | 193,776 | 145,244 | 104,792 | 92,287 |
| Inventory turnover | 2.96 | 2.95 | 2.87 | 3.07 | 3.57 |
August 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $461,069K ÷ $155,932K
= 2.96
The inventory turnover for Lindsay Corporation has exhibited a fluctuating trend over the past five years. In 2023, the inventory turnover ratio stood at 2.96, a slight increase from 2.95 in 2022. This indicates that the company's inventory was turned over approximately 2.96 times during the year, representing a marginal improvement in efficiency in managing its inventory.
Comparing the recent figure to the 2021 and 2020 ratios of 2.87 and 3.07, respectively, it is evident that there has been some variability in the efficiency of inventory management. The 2023 ratio was lower than that of 2020, suggesting a potential decrease in the speed at which the company is selling its inventory.
Furthermore, the current inventory turnover is significantly lower than the 2019 figure of 3.57, indicating a notable decline in the speed of inventory turnover over the past four years. This may be indicative of changes in the company's sales patterns or inventory management policies.
Overall, the inventory turnover ratio for Lindsay Corporation has experienced some inconsistency in recent years, warranting further investigation into the factors influencing the company's inventory management efficiency.
Peer comparison
Aug 31, 2023