Lindsay Corporation (LNN)
Receivables turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 674,084 | 770,743 | 567,646 | 474,692 | 444,072 |
| Receivables | US$ in thousands | 144,774 | 138,200 | 93,609 | 84,604 | 75,551 |
| Receivables turnover | 4.66 | 5.58 | 6.06 | 5.61 | 5.88 |
August 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $674,084K ÷ $144,774K
= 4.66
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates more efficient collection. In the case of Lindsay Corporation, the receivables turnover ratio has experienced a declining trend from 2019 to 2023. In 2023, the ratio stands at 4.66, down from 5.58 in 2022, 6.06 in 2021, and 5.61 in 2020. This indicates that, on average, the company is collecting its accounts receivable approximately 4.66 times during the year, which is a decrease from previous years. The declining trend may warrant further investigation into the company's credit policies, collection procedures, or the quality of its customer base to understand the reasons behind the decreasing efficiency in collecting receivables.
Peer comparison
Aug 31, 2023