Lindsay Corporation (LNN)
Working capital turnover
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 444,072 | 465,456 |
| Total current assets | US$ in thousands | 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 | 313,490 | 317,161 |
| Total current liabilities | US$ in thousands | 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 | 82,131 | 86,819 |
| Working capital turnover | 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 | 1.92 | 2.02 |
February 29, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $644,561K ÷ ($500,713K – $129,278K)
= 1.74
The working capital turnover ratio for Lindsay Corporation has shown some fluctuations over the past several periods, ranging from a low of 1.74 to a high of 2.44. This ratio indicates the company's ability to effectively utilize its working capital to generate sales revenue. A higher ratio generally signifies that the company is efficiently managing its working capital to support its sales activities.
In the latest period, the working capital turnover ratio was 1.74, indicating a slight decrease compared to the previous period. The downward trend suggests a potential inefficiency in utilizing working capital to support sales. It is worth noting that a ratio below 2 may indicate that the company is not able to convert its working capital into sales as effectively as in previous periods.
Overall, monitoring the working capital turnover ratio over time can provide valuable insights into the company's liquidity management and operational efficiency. Further analysis of underlying factors affecting working capital management may be necessary to address any potential challenges in optimizing the company's working capital turnover.
Peer comparison
Feb 29, 2024