Lindsay Corporation (LNN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.35 | 2.24 | 2.29 | 2.24 | 2.06 | 1.80 | 1.58 | 1.45 | 1.42 | 1.54 | 1.74 | 1.72 | 1.96 | 2.16 | 2.20 | 1.93 | 2.28 | 2.36 | 2.47 | 2.37 |
| Cash ratio | 1.17 | 1.24 | 1.22 | 1.09 | 0.80 | 0.74 | 0.72 | 0.55 | 0.58 | 0.78 | 1.06 | 0.97 | 1.13 | 1.43 | 1.38 | 1.13 | 1.37 | 1.43 | 1.55 | 1.28 |
Lindsay Corporation has shown consistently strong liquidity ratios over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been above 2.5, indicating a healthy level of liquidity. The trend shows an increasing current ratio, reaching 3.87 as of February 29, 2024, suggesting that the company's assets are increasing relative to its liabilities.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has also been robust, consistently above 1.5. This indicates that the company can meet its short-term obligations even if inventory cannot be quickly converted into cash. The trend for the quick ratio has been positive as well, reaching 2.35 as of February 29, 2024.
Furthermore, the cash ratio, which is the most conservative measure of liquidity as it considers only cash and cash equivalents to current liabilities, has shown a strong upward trend, reflecting the company's ability to cover its short-term obligations with its readily available cash. The cash ratio stood at 1.17 as of February 29, 2024, increasing steadily from previous periods.
Overall, Lindsay Corporation's liquidity ratios indicate a healthy financial position with ample resources to meet its short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 186.08 | 170.05 | 166.78 | 175.55 | 169.72 | 157.20 | 150.85 | 157.85 | 150.80 | 154.22 | 147.66 | 156.20 | 154.42 | 145.62 | 150.30 | 161.14 | 148.87 | 141.85 | 131.73 | 130.04 |
The cash conversion cycle of Lindsay Corporation has shown some fluctuations over the past few periods. The company's cash conversion cycle measures the time it takes for the company to convert its investment in inventory and other resources into cash flows from sales.
From November 2019 to February 2024, the cash conversion cycle ranged from a low of 130.04 days to a high of 186.08 days. Generally, a shorter cash conversion cycle is favorable as it indicates that the company is efficiently managing its working capital, leading to quicker cash inflows and a more robust cash position.
During this period, the longest cash conversion cycle was observed in February 2024 at 186.08 days, while the shortest was in November 2019 at 130.04 days. It is crucial for the company to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and liquidity management.
Overall, although there have been fluctuations in the cash conversion cycle of Lindsay Corporation, the company should strive to maintain a shorter cycle to enhance its financial health and operational efficiency.