Lindsay Corporation (LNN)

Inventory turnover

		Aug 31, 2024	May 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	416,019	421,335	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
Inventory	US$ in thousands	154,453	171,522	167,334	164,100	155,932	166,759	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
Inventory turnover		2.69	2.46	2.63	2.74	2.96	2.88	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

August 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $416,019K ÷ $154,453K
= 2.69

Inventory turnover for Lindsay Corporation has been relatively stable over the past two years, ranging from a low of 2.46 to a high of 3.30. The average inventory turnover during this period was approximately 2.86 times. This indicates that, on average, inventory is sold and replaced almost three times a year.

The trend over the past two years shows a slight decrease in inventory turnover, indicating that the company may be holding onto inventory for longer periods or experiencing slower sales. A sudden spike in inventory turnover in November 2020 to 3.07 suggests a possible increase in sales efficiency or a reduction in excess inventory.

Overall, while the company's inventory turnover is within a reasonable range, management may consider optimizing inventory levels to improve efficiency and reduce carrying costs. Monitoring inventory turnover regularly can help identify any fluctuations that may impact the company's profitability and operational performance.

Peer comparison

Aug 31, 2024

Company name

Symbol

Inventory turnover

Lindsay Corporation

LNN

2.69