Lindsay Corporation (LNN)
Liquidity ratios
| Aug 31, 2024 | May 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.92 | 3.95 | 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 |
| Quick ratio | 2.44 | 2.32 | 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 |
| Cash ratio | 1.52 | 1.23 | 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 |
Lindsay Corporation's liquidity ratios have shown relatively stable trends over the past few quarters. The current ratio has consistently remained above 3.0, indicating a strong ability to cover its short-term liabilities with its current assets. This suggests that the company has a healthy liquidity position to meet its obligations in the near term.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been consistently above 2.0. This signifies that Lindsay Corporation can meet its short-term liabilities without relying on selling inventory, which is a positive indicator of liquidity.
The cash ratio, which is the most conservative measure of liquidity as it considers only cash and cash equivalents to cover current liabilities, has shown a firm upward trend. This means that the company is increasingly able to meet its immediate obligations solely through its cash assets.
Overall, Lindsay Corporation appears to have a robust liquidity position based on its current, quick, and cash ratios, suggesting that the company is well-equipped to handle its short-term financial requirements.
Additional liquidity measure
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 172.79 | 197.47 | 186.08 | 170.05 | 166.78 | 175.52 | 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 |
The cash conversion cycle of Lindsay Corporation has shown some variability over the past few periods. The cycle measures the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we can observe fluctuations in the cash conversion cycle, ranging from a low of 141.85 days to a high of 197.47 days. This indicates that the efficiency of the company in managing its working capital and converting its resources into cash has been inconsistent.
It is essential to note that a shorter cash conversion cycle is generally favorable as it implies that the company is able to quickly convert its investments into cash. Conversely, a longer cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.
Analyzing the trends in the cash conversion cycle over time can provide valuable insights into the company's operational efficiency and effectiveness in managing its working capital. Continual monitoring and improvement in this metric can help enhance the company's cash flow management and overall financial performance.