Lindsay Corporation (LNN)
Cash ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 160,755 | 105,048 | 127,107 | 121,403 | 127,204 |
| Short-term investments | US$ in thousands | 5,556 | 11,460 | 19,604 | 19,511 | 0 |
| Total current liabilities | US$ in thousands | 136,108 | 160,942 | 138,240 | 102,395 | 82,131 |
| Cash ratio | 1.22 | 0.72 | 1.06 | 1.38 | 1.55 |
August 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($160,755K
+ $5,556K)
÷ $136,108K
= 1.22
The cash ratio of Lindsay Corporation has fluctuated over the past five years, indicating variations in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In August 2023, the cash ratio stood at 1.37, representing an increase from the previous year's 0.90. This substantial improvement suggests that the company's liquidity position strengthened significantly, with a larger proportion of cash and cash equivalents available to meet current obligations.
In the prior year, the cash ratio had declined to 0.90 from 1.28 in 2021, signaling a potential decrease in the company's ability to settle short-term liabilities using its readily available cash. However, it is noteworthy that the 2022 ratio was the lowest over the analyzed period.
The most significant peak in the cash ratio was observed in 2019, reaching 1.74, indicating a particularly strong liquidity position at that time. Subsequently, a downward trend in the ratio can be discerned, suggesting a potential decrease in the company's ability to quickly settle its short-term liabilities with cash.
The fluctuations in the cash ratio demonstrate the dynamic nature of Lindsay Corporation's liquidity management and its capability to address short-term obligations with its available cash and cash equivalents.
Peer comparison
Aug 31, 2023