Lindsay Corporation (LNN)
Current ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 493,212 | 487,484 | 477,101 | 416,103 | 347,935 |
| Total current liabilities | US$ in thousands | 125,816 | 136,108 | 160,942 | 138,240 | 102,395 |
| Current ratio | 3.92 | 3.58 | 2.96 | 3.01 | 3.40 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $493,212K ÷ $125,816K
= 3.92
The current ratio of Lindsay Corporation has shown fluctuations over the past five years. In Aug 31, 2024, the company's current ratio stands at 3.92, indicating that for every dollar of current liabilities, the company has $3.92 in current assets. This represents an improvement from the previous year's ratio of 3.58 in Aug 31, 2023.
Looking back over the last five years, there has been variability in the company's ability to cover its short-term obligations. The current ratio was at its lowest in Aug 31, 2022, at 2.96, but has generally remained above 3.0 during this period. This indicates that the company has had a relatively strong liquidity position with sufficient current assets to meet its short-term liabilities.
Overall, the upward trend in the current ratio is a positive indicator of Lindsay Corporation's liquidity and ability to cover its short-term obligations. However, it is important for the company to maintain a balance between current assets and liabilities to ensure continued financial health and stability.
Peer comparison
Aug 31, 2024