Lindsay Corporation (LNN)
Profitability ratios
Return on sales
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.60% | 25.84% | 26.46% | 32.14% | 25.81% |
| Operating profit margin | 15.16% | 12.28% | 9.53% | 11.42% | 1.38% |
| Pretax margin | 14.89% | 11.40% | 8.88% | 10.29% | 0.47% |
| Net profit margin | 10.74% | 8.49% | 7.50% | 8.14% | 0.49% |
The profitability ratios of Lindsay Corporation have shown positive trends over the past five years. The gross profit margin has improved consistently from 25.81% in 2019 to 31.60% in 2023, indicating better control over production and operational costs. This suggests the company has been able to maintain a healthy level of profitability on its sales.
Moreover, the operating profit margin has also demonstrated a steady increase, reaching 15.16% in 2023 from 1.38% in 2019. This highlights the company's efficient management of its operating expenses and reflects a strong ability to generate profits from its core business activities.
The pretax margin has followed a similar upward trajectory, indicating the company's ability to control its non-operating expenses and improve overall profitability before taxes. The trend in this ratio indicates a consistent improvement in the company's overall financial performance.
In addition, the net profit margin has exhibited a positive trend, climbing from 0.49% in 2019 to 10.74% in 2023. This indicates that the company has become more effective at managing its interest expenses, taxes, and other non-operating costs, resulting in increased profitability for the shareholders.
Overall, the improvement in all profitability ratios over the past five years suggests that Lindsay Corporation has successfully enhanced its operational efficiency and financial performance, which may be indicative of a stronger competitive position in the industry and improved returns for its investors.
Return on investment
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.70% | 13.32% | 8.49% | 9.50% | 1.22% |
| Return on assets (ROA) | 9.71% | 9.21% | 6.68% | 6.77% | 0.43% |
| Return on total capital | 18.25% | 18.11% | 12.15% | 12.94% | 1.79% |
| Return on equity (ROE) | 15.88% | 16.64% | 12.58% | 12.94% | 0.81% |
Lindsay Corporation's profitability ratios have shown a consistently improving trend over the past five years, indicating efficient management of its assets and capital. The operating return on assets (Operating ROA) has increased from 1.22% in 2019 to 13.70% in 2023, reflecting the company's ability to generate operating income from its assets.
Similarly, the return on assets (ROA) has steadily increased from 0.43% in 2019 to 9.71% in 2023, indicating an improvement in the company's overall profitability in relation to its total assets. This suggests that Lindsay Corporation has been able to utilize its assets more efficiently to generate profits over the years.
The return on total capital has also shown a positive trend, increasing from 1.59% in 2019 to 17.89% in 2023. This indicates that the company has been successful in generating returns from its total capital, which includes both equity and debt.
Furthermore, the return on equity (ROE) has experienced steady growth, increasing from 0.81% in 2019 to 15.88% in 2023, demonstrating the company's ability to generate profit from shareholders' equity.
Overall, Lindsay Corporation's profitability ratios reflect a strong performance, with consistent improvement over the years, highlighting effective management of assets and capital to generate higher returns for the company and its shareholders.