Lindsay Corporation (LNN)
Payables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 416,019 | 461,069 | 571,565 | 417,441 | 322,149 |
| Payables | US$ in thousands | 37,417 | 44,278 | 60,036 | 45,209 | 29,554 |
| Payables turnover | 11.12 | 10.41 | 9.52 | 9.23 | 10.90 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $416,019K ÷ $37,417K
= 11.12
Lindsay Corporation's payables turnover has shown a fluctuating trend over the past five years. The ratio has steadily improved from 9.23 in 2021 to 11.12 in 2024, indicating that the company is paying its suppliers more frequently each year. This could suggest efficient management of accounts payable and potentially stronger supplier relationships. However, it is important to note that a very high payables turnover ratio may also indicate aggressive tactics in managing payables, which could strain supplier relationships or signal liquidity issues. Overall, an increasing payables turnover ratio generally reflects a positive trend in managing the company's accounts payable effectively.
Peer comparison
Aug 31, 2024