Lindsay Corporation (LNN)

The liquidity ratios of Lindsay Corporation have shown some fluctuations over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has demonstrated a declining trend, from 3.82 in 2019 to 3.58 in 2023. Despite the decrease, the current ratio remains consistently above 1, indicating a healthy short-term financial position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also displays a decreasing pattern from 2.66 in 2019 to 2.44 in 2023. This suggests a lower level of immediate liquidity as compared to the previous years.

The cash ratio, reflecting the company's ability to settle current liabilities with its cash and cash equivalents, also exhibits a declining trend over the years, falling from 1.74 in 2019 to 1.37 in 2023.

Overall, while the liquidity ratios have decreased over the past five years, Lindsay Corporation continues to maintain a strong liquidity position, with current, quick, and cash ratios consistently well above 1. However, the declining trend across all three ratios may warrant closer monitoring to ensure the company's ability to meet short-term obligations and capital needs.

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Additional liquidity measure

The cash conversion cycle for Lindsay Corporation has shown a fluctuating trend over the past five years. In 2023, the cash conversion cycle increased to 166.78 days compared to 150.85 days in 2022. This suggests a longer period for the company to convert its resources into cash. The company's ability to manage its cash, inventory, and accounts receivable has appeared less efficient in 2023 compared to the previous year.

Furthermore, the cash conversion cycle in 2023 was higher than in 2021, which indicates that the company took longer to convert its resources into cash compared to the prior year. However, the cash conversion cycle in 2023 was still lower than in 2020, implying that the company improved its efficiency in managing its working capital from 2020 to 2023.

Overall, the trend in the cash conversion cycle over the past five years indicates some variability in the company's ability to efficiently manage its working capital. It may be worthwhile for the company to analyze the underlying reasons for these fluctuations and consider potential strategies to improve its cash conversion cycle in the future.