Lindsay Corporation (LNN)
Inventory turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 439,965 | 449,383 | 461,069 | 479,533 | 520,780 | 565,990 | 571,565 | 558,567 | 523,868 | 469,078 | 417,441 | 380,398 | 345,928 | 323,907 | 322,149 | 309,509 | 317,154 | 321,480 | 329,464 | 350,064 |
| Inventory | US$ in thousands | 167,334 | 164,100 | 155,932 | 166,800 | 178,703 | 188,404 | 193,776 | 195,600 | 187,300 | 173,115 | 145,244 | 136,601 | 121,566 | 114,278 | 104,792 | 113,301 | 105,454 | 97,284 | 92,287 | 91,091 |
| Inventory turnover | 2.63 | 2.74 | 2.96 | 2.87 | 2.91 | 3.00 | 2.95 | 2.86 | 2.80 | 2.71 | 2.87 | 2.78 | 2.85 | 2.83 | 3.07 | 2.73 | 3.01 | 3.30 | 3.57 | 3.84 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $439,965K ÷ $167,334K
= 2.63
Lindsay Corporation's inventory turnover has shown fluctuations over the past several periods. The inventory turnover ratio measures the efficiency with which a company manages its inventory by indicating how many times the inventory is sold and replaced over a certain period.
From Nov 30, 2019, to Nov 30, 2023, Lindsay Corporation's inventory turnover ranged from a low of 2.63 to a high of 3.00. Although there have been variations in the ratio, it generally stayed within a relatively narrow range.
A higher inventory turnover ratio typically indicates efficient inventory management, as it suggests that the company is selling and restocking its inventory at a faster pace. Conversely, a lower ratio may suggest slower sales or potentially excess inventory.
It is important for Lindsay Corporation to analyze the trends in inventory turnover over time and compare them with industry benchmarks to assess its competitiveness and operational efficiency. By monitoring this ratio consistently, the company can make informed decisions regarding inventory management, pricing, and production levels to optimize its operations and profitability.
Peer comparison
Feb 29, 2024
Feb 29, 2024