Lindsay Corporation (LNN)
Cash ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 190,879 | 160,755 | 105,048 | 127,107 | 121,403 |
| Short-term investments | US$ in thousands | 0 | 5,556 | 11,460 | 19,604 | 19,511 |
| Total current liabilities | US$ in thousands | 125,816 | 136,108 | 160,942 | 138,240 | 102,395 |
| Cash ratio | 1.52 | 1.22 | 0.72 | 1.06 | 1.38 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($190,879K
+ $0K)
÷ $125,816K
= 1.52
The cash ratio of Lindsay Corporation has shown fluctuations over the past five years. In 2024, the cash ratio improved to 1.52 from 1.22 in 2023, indicating a stronger ability to cover short-term liabilities with cash on hand. This may suggest improved liquidity and financial health.
Comparing with previous years, the cash ratio was relatively low in 2022 at 0.72, signaling a potential liquidity challenge. However, the ratio increased in 2023 and continued to improve in 2024, surpassing the 2020 and 2021 levels.
It is important to note that the cash ratio alone does not provide a complete picture of the company's financial health, as it only considers cash and cash equivalents in relation to current liabilities. A combination of liquidity ratios and other financial metrics would give a more comprehensive assessment.
Peer comparison
Aug 31, 2024