Lindsay Corporation (LNN)
Current ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 487,484 | 477,101 | 416,103 | 347,935 | 313,490 |
| Total current liabilities | US$ in thousands | 136,108 | 160,942 | 138,240 | 102,395 | 82,131 |
| Current ratio | 3.58 | 2.96 | 3.01 | 3.40 | 3.82 |
August 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $487,484K ÷ $136,108K
= 3.58
The current ratio of Lindsay Corporation has shown variations over the past five years, as follows:
- In 2023, the current ratio is 3.58, which indicates that the company has $3.58 in current assets for every $1 in current liabilities. This represents an increase from the previous year, reflecting an improved liquidity position. The increase in the current ratio may suggest that Lindsay Corporation has a strong ability to meet its short-term obligations using its current assets.
- In 2022, the current ratio was 2.96, which was lower than the current ratio in 2023. This may signal a decrease in liquidity compared to the previous year. The decrease could be due to various factors such as changes in the composition of current assets and liabilities, changes in the company's liquidity management, or changes in the company's operating cycle.
- In 2021, the current ratio was 3.01, showing a slight increase from the previous year. This increment demonstrates an improved ability to cover short-term obligations with current assets. The increase may be attributed to effective management of current assets and liabilities, which contributed to a stronger liquidity position.
- In 2020, the current ratio was 3.40, indicating a decrease from the previous year. This decline in the current ratio could potentially signal a decrease in the company's ability to cover short-term obligations with its current assets. Further analysis would be needed to ascertain the reasons behind this change.
- In 2019, the current ratio was 3.82, reflecting a decrease from the following year. Even though the ratio decreased, this level still points to a strong liquidity position, as the company has $3.82 in current assets for every $1 in current liabilities. The decrease over the years could be due to various business decisions, changes in the economic environment, or changes in the composition of current assets and liabilities.
In conclusion, the current ratio of Lindsay Corporation has exhibited fluctuations over the past five years, with instances of both increases and decreases. It is essential for stakeholders to further investigate the reasons behind these variations to understand the company's financial performance and the effectiveness of its liquidity management.
Peer comparison
Aug 31, 2023