Lindsay Corporation (LNN)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 500,713 | 501,302 | 487,484 | 491,252 | 480,121 | 481,407 | 477,101 | 475,434 | 450,257 | 426,333 | 416,103 | 417,725 | 375,616 | 356,450 | 347,935 | 339,187 | 325,017 | 316,631 | 313,490 | 317,161 |
| Total current liabilities | US$ in thousands | 129,278 | 141,971 | 136,108 | 133,048 | 132,788 | 148,585 | 160,942 | 173,814 | 161,402 | 147,782 | 138,240 | 144,156 | 114,836 | 102,387 | 102,395 | 107,217 | 87,821 | 84,801 | 82,131 | 86,819 |
| Current ratio | 3.87 | 3.53 | 3.58 | 3.69 | 3.62 | 3.24 | 2.96 | 2.74 | 2.79 | 2.88 | 3.01 | 2.90 | 3.27 | 3.48 | 3.40 | 3.16 | 3.70 | 3.73 | 3.82 | 3.65 |
February 29, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $500,713K ÷ $129,278K
= 3.87
The current ratio for Lindsay Corporation has shown fluctuating trends over the past few quarters, ranging from a low of 2.74 to a high of 3.87. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets to cover its current liabilities.
In general, Lindsay Corporation has maintained a current ratio above 3.0, reflecting a healthy liquidity position and the ability to meet its short-term obligations comfortably. The upward trend in the current ratio from the fourth quarter of 2021 to the first and second quarters of 2024 suggests an improvement in the company's liquidity position over time.
It is important to note that while a high current ratio is generally favorable, an excessively high ratio may indicate an inefficient use of assets, as a significant portion of resources is tied up in low-return assets. Therefore, it is essential for management to strike a balance between liquidity and asset efficiency to ensure optimal financial performance.
Peer comparison
Feb 29, 2024