Lindsay Corporation (LNN)
Quick ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 190,879 | 160,755 | 105,048 | 127,107 | 121,403 |
| Short-term investments | US$ in thousands | 0 | 5,556 | 11,460 | 19,604 | 19,511 |
| Receivables | US$ in thousands | 116,601 | 144,774 | 138,200 | 93,609 | 84,604 |
| Total current liabilities | US$ in thousands | 125,816 | 136,108 | 160,942 | 138,240 | 102,395 |
| Quick ratio | 2.44 | 2.29 | 1.58 | 1.74 | 2.20 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($190,879K
+ $0K
+ $116,601K)
÷ $125,816K
= 2.44
The quick ratio of Lindsay Corporation has shown some fluctuations over the past five years. In 2024, the quick ratio stands at 2.44, indicating that the company has $2.44 in liquid assets available to cover each dollar of current liabilities. This demonstrates a strong liquidity position, as the company has a larger buffer to meet its short-term obligations.
Comparing this to previous years, we observe a general trend of improving liquidity from 2022 to 2024. The quick ratio increased from 1.58 in 2022 to 2.44 in 2024, indicating that the company has become more capable of meeting its short-term obligations with its liquid assets.
In 2023 and 2021, the quick ratio was 2.29 and 1.74 respectively. Although the quick ratio in 2021 was lower than the current year, the company was still able to cover its current liabilities comfortably. The quick ratio in 2020 was 2.20, showing a similar level of liquidity as in 2023.
Overall, the increasing trend in the quick ratio over the past three years suggests that Lindsay Corporation has been managing its short-term liquidity effectively and is in a stronger position to weather any unforeseen financial challenges that may arise in the near term.
Peer comparison
Aug 31, 2024