Lindsay Corporation (LNN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 138.82 | 133.29 | 123.44 | 126.96 | 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 | 102.24 | 94.98 |
| Days of sales outstanding (DSO) | days | 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 | 62.10 | 74.17 |
| Number of days of payables | days | 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 | 32.61 | 39.11 |
| Cash conversion cycle | days | 186.08 | 170.05 | 166.78 | 175.55 | 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 | 131.73 | 130.04 |
February 29, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 138.82 + 86.99 – 39.74
= 186.08
The cash conversion cycle for Lindsay Corporation has shown some variability over the past several periods. The company's cash conversion cycle, which represents the time it takes to convert inventory into cash from sales, has ranged from a high of 186.08 days to a low of 130.04 days.
In recent periods, the cash conversion cycle has generally been in the range of 140 to 170 days, indicating that the company takes between approximately 4 to 6 months to convert its resources into cash flow. This demonstrates that Lindsay Corporation has a relatively lengthy cash conversion cycle compared to industry benchmarks, which could potentially indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.
Overall, it would be advisable for Lindsay Corporation to focus on improving its efficiency in managing its working capital components to reduce its cash conversion cycle and optimize its cash flow operations.
Peer comparison
Feb 29, 2024