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

Company name
Symbol
Working capital turnover
Lindsay Corporation
LNN
1.65
AGCO Corporation
AGCO
7.21
Alamo Group Inc
ALG
2.86
Deere & Company
DE