Lindsay Corporation (LNN)
Working capital 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 |
| Total current assets | US$ in thousands | 493,212 | 487,484 | 477,101 | 416,103 | 347,935 |
| Total current liabilities | US$ in thousands | 125,816 | 136,108 | 160,942 | 138,240 | 102,395 |
| Working capital turnover | 1.65 | 1.92 | 2.44 | 2.04 | 1.93 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $607,074K ÷ ($493,212K – $125,816K)
= 1.65
Lindsay Corporation's working capital turnover has exhibited fluctuations over the past five years. The ratio peaked at 2.44 in August 2022, indicating that the company generated revenue 2.44 times for every dollar of working capital invested during that period. Subsequently, there was a decline in the ratio to 2.04 in August 2021 before further decreasing to 1.93 in August 2020. However, there was a slight improvement in the ratio in August 2023, reaching 1.92, before dropping to 1.65 in August 2024. This downward trend in the working capital turnover ratio signifies that the efficiency of generating revenue relative to the working capital employed has decreased over the last two years. Further analysis is needed to determine the underlying reasons for this decline and potential strategies for improvement.
Peer comparison
Aug 31, 2024