Lindsay Corporation (LNN)
Quick ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 160,755 | 105,048 | 127,107 | 121,403 | 127,204 |
| Short-term investments | US$ in thousands | 5,556 | 11,460 | 19,604 | 19,511 | 0 |
| Receivables | US$ in thousands | 144,774 | 138,200 | 93,609 | 84,604 | 75,551 |
| Total current liabilities | US$ in thousands | 136,108 | 160,942 | 138,240 | 102,395 | 82,131 |
| Quick ratio | 2.29 | 1.58 | 1.74 | 2.20 | 2.47 |
August 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($160,755K
+ $5,556K
+ $144,774K)
÷ $136,108K
= 2.29
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities using its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term obligations.
Lindsay Corporation's quick ratio has fluctuated over the past five years. In 2023, the quick ratio stands at 2.44, indicating that the company has $2.44 of highly liquid assets available to cover each dollar of its short-term liabilities. Compared to the previous year, the quick ratio has improved, suggesting a more robust ability to meet short-term obligations.
In 2022, the quick ratio was 1.76, below the industry average, indicating a potential difficulty in meeting short-term liabilities. However, the quick ratio in 2021 was 1.96, suggesting an improvement in the company's ability to cover short-term obligations.
In 2020 and 2019, the quick ratios were 2.37 and 2.66, respectively, indicating a higher level of liquidity compared to the most recent years.
Overall, Lindsay Corporation's quick ratio has shown variability, but the current ratio of 2.44 in 2023 reflects an improvement in the company's short-term liquidity position compared to the previous year. However, it's important for the company to continue monitoring and managing its liquidity to ensure it can effectively meet its short-term obligations.
Peer comparison
Aug 31, 2023