Lindsay Corporation (LNN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 135.51 | 148.59 | 138.82 | 133.29 | 123.44 | 126.93 | 125.25 | 121.50 | 123.74 | 127.82 | 130.50 | 134.70 | 127.00 | 131.07 | 128.27 | 128.78 | 118.73 | 133.61 | 121.36 | 110.45 |
| Days of sales outstanding (DSO) | days | 70.11 | 79.26 | 86.99 | 79.20 | 78.39 | 80.72 | 81.62 | 73.45 | 65.45 | 77.31 | 72.10 | 65.35 | 60.19 | 72.48 | 68.29 | 57.71 | 65.05 | 69.17 | 65.84 | 65.57 |
| Number of days of payables | days | 32.83 | 30.37 | 39.74 | 42.43 | 35.05 | 32.13 | 37.14 | 37.75 | 38.34 | 47.28 | 51.80 | 45.84 | 39.53 | 47.35 | 42.14 | 40.86 | 33.49 | 41.64 | 38.33 | 34.17 |
| Cash conversion cycle | days | 172.79 | 197.47 | 186.08 | 170.05 | 166.78 | 175.52 | 169.72 | 157.20 | 150.85 | 157.85 | 150.80 | 154.22 | 147.66 | 156.20 | 154.42 | 145.62 | 150.30 | 161.14 | 148.87 | 141.85 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 135.51 + 70.11 – 32.83
= 172.79
The cash conversion cycle of Lindsay Corporation has exhibited fluctuations over the past few periods. The average cash conversion cycle over the most recent period stood at 172.79 days, indicating the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
It is observed that the company's cash conversion cycle has generally been within the range of 145 to 197 days over the past few years. A lower cash conversion cycle indicates that the company is efficient in managing its working capital and converting its resources into cash, while a higher cycle implies inefficiencies that could impact the company's liquidity and overall financial health.
The trend in Lindsay Corporation's cash conversion cycle shows some variability, with fluctuations in the cycle length. Monitoring and managing the components of the cash conversion cycle, including inventory turnover, accounts receivable collection period, and accounts payable payment period, are crucial for optimizing working capital management and cash flow generation.
Further analysis and comparison with industry benchmarks can provide additional insights into the company's efficiency in managing its cash conversion cycle and working capital requirements. Overall, maintaining an optimal cash conversion cycle is essential for ensuring sustainable operations and financial stability.
Peer comparison
Aug 31, 2024