Lindsay Corporation (LNN)
Working capital turnover
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 607,074 | 619,207 | 644,561 | 659,283 | 674,084 | 697,149 | 746,855 | 780,751 | 770,744 | 734,196 | 681,873 | 625,313 | 567,646 | 542,403 | 503,573 | 473,784 | 474,692 | 448,172 | 446,120 | 441,514 |
| Total current assets | US$ in thousands | 493,212 | 488,718 | 500,713 | 501,302 | 487,484 | 491,252 | 480,121 | 481,407 | 477,101 | 475,434 | 450,257 | 426,333 | 416,103 | 417,725 | 375,616 | 356,450 | 347,935 | 339,187 | 325,017 | 316,631 |
| Total current liabilities | US$ in thousands | 125,816 | 123,737 | 129,278 | 141,971 | 136,108 | 133,048 | 132,788 | 148,585 | 160,942 | 173,814 | 161,402 | 147,782 | 138,240 | 144,156 | 114,836 | 102,387 | 102,395 | 107,217 | 87,821 | 84,801 |
| Working capital turnover | 1.65 | 1.70 | 1.74 | 1.83 | 1.92 | 1.95 | 2.15 | 2.35 | 2.44 | 2.43 | 2.36 | 2.24 | 2.04 | 1.98 | 1.93 | 1.86 | 1.93 | 1.93 | 1.88 | 1.90 |
August 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 few periods. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio signifies that the company is effectively using its working capital to generate sales.
From November 2019 to August 2020, there was a slight increase in the working capital turnover ratio, which peaked at 1.93. However, there was a dip in the ratio in February 2021 before reaching its lowest point in August 2021 at 1.90.
Subsequently, there was an upward trend in the ratio, reaching its highest point at 2.44 in May 2022. This indicates that the company was able to generate 2.44 times its sales revenue using its working capital during that period.
After reaching the peak in May 2022, the working capital turnover ratio showed a slight decline, although it remained relatively high, indicating efficient working capital management.
Overall, the trend in Lindsay Corporation's working capital turnover suggests that the company has been effectively utilizing its working capital to support sales growth, with some fluctuations over the observed periods.
Peer comparison
Aug 31, 2024