Lindsay Corporation (LNN)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.47% | 31.60% | 25.84% | 26.46% | 32.14% |
| Operating profit margin | 12.62% | 15.16% | 12.28% | 9.53% | 11.42% |
| Pretax margin | 13.02% | 14.89% | 11.40% | 8.88% | 10.29% |
| Net profit margin | 10.91% | 10.74% | 8.49% | 7.50% | 8.14% |
Lindsay Corporation's profitability ratios have shown fluctuations over the past five years.
The gross profit margin has varied between 25.84% and 32.14% during this period, with the most recent data indicating a slight decrease to 31.47% in 2024. This ratio represents the efficiency of the company in generating profit from its cost of goods sold.
The operating profit margin has also experienced fluctuations, ranging from 9.53% to 15.16%. In 2024, the operating profit margin declined to 12.62%. This ratio shows the company's ability to control its operating expenses while generating profits from its core operations.
The pretax margin, which reflects the company's profitability before accounting for taxes, has shown variability between 8.88% and 14.89%. In 2024, the pretax margin stood at 13.02%, indicating an improvement from the previous year. This ratio highlights the company's earnings relative to its total revenue.
The net profit margin, representing the company's bottom line profitability after all expenses have been deducted, has ranged from 7.50% to 10.91%. In 2024, the net profit margin increased to 10.91%, reflecting Lindsay Corporation's ability to improve its profitability at the net income level.
Overall, while there have been fluctuations in Lindsay Corporation's profitability ratios over the past five years, the company has managed to maintain healthy margins, with a general trend of improvement in profitability, particularly in the most recent period.
Return on investment
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.08% | 13.70% | 13.32% | 8.49% | 9.50% |
| Return on assets (ROA) | 8.72% | 9.71% | 9.21% | 6.68% | 6.77% |
| Return on total capital | 12.86% | 18.25% | 18.11% | 12.15% | 12.94% |
| Return on equity (ROE) | 13.78% | 15.88% | 16.64% | 12.58% | 12.94% |
Lindsay Corporation's profitability ratios exhibit fluctuating trends over the past five years. The Operating return on assets (Operating ROA) decreased from 13.70% in 2023 to 10.08% in 2024, indicating a decline in the company's ability to generate operating income from its assets.
Return on assets (ROA) also showed a similar pattern, dropping from 9.71% in 2023 to 8.72% in 2024, suggesting a decrease in overall efficiency in utilizing assets to generate profits.
Return on total capital experienced a significant decline from 18.25% in 2023 to 12.86% in 2024, indicating a lower return on the total invested capital in the business.
On the other hand, Return on equity (ROE) fluctuated over the years but remained relatively stable, with a slight increase from 15.88% in 2023 to 13.78% in 2024. This indicates that shareholders' equity is providing a satisfactory return.
In summary, Lindsay Corporation's profitability ratios show varying trends, with a notable decrease in operational efficiency as evidenced by the downward trend in Operating ROA and ROA. The Return on equity remains relatively stable, reflecting a consistent return to the company's shareholders.