Lindsay Corporation (LNN)

Short-term

Turnover ratios

Lindsay Corporation's activity ratios reflect its efficiency in managing inventory, receivables, payables, and working capital over multiple periods.

1. Inventory Turnover: The company's inventory turnover has ranged from 2.63 to 3.84 over the past few periods. This indicates that, on average, inventory is sold and replaced approximately 2.63 to 3.84 times during a specific period. A higher turnover ratio suggests efficient management of inventory levels.

2. Receivables Turnover: Lindsay Corporation's receivables turnover has fluctuated between 4.20 and 6.32. This ratio indicates how quickly the company collects cash from its credit sales. A higher turnover ratio suggests efficient management of accounts receivable and timely collection from customers.

3. Payables Turnover: The payables turnover has varied between 7.05 and 11.36. This ratio reflects how many times the company pays its suppliers during a particular period. A higher turnover ratio implies that the company is paying its suppliers more frequently.

4. Working Capital Turnover: The working capital turnover has ranged from 1.74 to 2.44. This ratio measures the efficiency of the company in generating revenue from its working capital. A higher turnover ratio indicates better utilization of working capital in generating sales.

Overall, Lindsay Corporation's activity ratios depict a varying level of efficiency in managing its assets and liabilities over the analyzed periods. It is essential for the company to maintain a balance between these ratios to ensure optimal operational performance.

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Average number of days

Lindsay Corporation's activity ratios provide insights into how efficiently the company manages its operations.

1. Days of Inventory on Hand (DOH): Lindsay Corporation's DOH has been fluctuating over the past few periods but has generally been on the higher side, ranging from around 94.98 days to 138.82 days. This indicates that the company holds inventory for an extended period before turning it into sales. Management may need to focus on optimizing inventory levels to improve working capital efficiency and reduce carrying costs.

2. Days of Sales Outstanding (DSO): The company's DSO has also varied but shows a decreasing trend from approximately 74.17 days to 57.71 days. A lower DSO implies that the company is collecting receivables more quickly, potentially improving cash flow and reducing the risk of bad debts. This trend suggests efficient accounts receivable management.

3. Number of Days of Payables: Lindsay Corporation's number of days of payables has shown some fluctuations, ranging from around 32.13 days to 51.80 days. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which can be a strategy to manage cash flow. However, management should also ensure timely payments to maintain good relationships with suppliers.

In summary, Lindsay Corporation should focus on optimizing inventory levels, continue improving accounts receivable management to collect payments quicker, and carefully manage payables to maintain a balance between cash flow and supplier relationships.

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Long-term

The long-term activity ratios of Lindsay Corporation, as indicated by the fixed asset turnover and total asset turnover, reflect the efficiency with which the company utilizes its assets to generate sales.

The fixed asset turnover ratio has shown a fluctuating trend over the periods, ranging from 5.64 to 8.35. This ratio measures the company's ability to generate sales from its investment in fixed assets. A higher ratio implies that the company is effectively utilizing its property, plant, and equipment to generate revenue. The increasing trend observed indicates improved efficiency in utilizing fixed assets over time.

On the other hand, the total asset turnover ratio has varied between 0.80 and 1.10. This ratio assesses how efficiently the company utilizes all of its assets to generate revenue. A higher total asset turnover suggests that the company is efficient in generating sales relative to its total assets. The trend for total asset turnover has shown some fluctuations, but generally indicates a decent efficiency in asset utilization, with occasional improvements observed over certain periods.

Overall, while the fixed asset turnover ratio demonstrates a positive trend indicating improved efficiency in utilizing fixed assets for generating sales, the total asset turnover ratio fluctuates but generally suggests a satisfactory efficiency in utilizing all assets to generate revenue over the periods analyzed.