Lindsay Corporation (LNN)
Receivables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 607,074 | 674,084 | 770,743 | 567,646 | 474,692 |
| Receivables | US$ in thousands | 116,601 | 144,774 | 138,200 | 93,609 | 84,604 |
| Receivables turnover | 5.21 | 4.66 | 5.58 | 6.06 | 5.61 |
August 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $607,074K ÷ $116,601K
= 5.21
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing the receivables turnover for Lindsay Corporation over the past five years, we observe the following trend:
- In FY 2024, the receivables turnover ratio was 5.21, showing a slight decrease from the previous year.
- The ratio was 4.66 in FY 2023, indicating a decreased efficiency in collecting receivables compared to the year before.
- In FY 2022, the ratio increased to 5.58, which suggests an improvement in collecting receivables compared to the previous year.
- FY 2021 had a receivables turnover ratio of 6.06, indicating the highest efficiency in collecting receivables among the five years analyzed.
- In FY 2020, the ratio was 5.61, showing a slightly lower efficiency in collecting receivables compared to the previous year.
Overall, the fluctuation in the receivables turnover ratio over the five-year period suggests variability in Lindsay Corporation's ability to collect its accounts receivable efficiently. Further analysis of the company's credit policies, collection procedures, and customer base may help identify factors contributing to these fluctuations and guide decision-making for improving receivables management.
Peer comparison
Aug 31, 2024