Lindsay Corporation (LNN)
Operating return on assets (Operating ROA)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 102,184 | 94,643 | 54,107 | 54,202 | 6,115 |
| Total assets | US$ in thousands | 745,660 | 710,653 | 637,185 | 570,526 | 500,314 |
| Operating ROA | 13.70% | 13.32% | 8.49% | 9.50% | 1.22% |
August 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $102,184K ÷ $745,660K
= 13.70%
Lindsay Corporation's operating return on assets (ROA) has exhibited positive trends over the past five years. The operating ROA increased from 1.22% in 2019 to 13.70% in 2023, reflecting a significant improvement in the company's ability to generate operating profits from its assets. This indicates that the company has been more effective in utilizing its assets to generate operating income. The consistent growth in operating ROA since 2019 signifies improved operational efficiency and profitability, which could be attributed to enhanced asset utilization or improved operational performance. However, it’s important to note that the operating ROA fluctuated over the years, reaching a peak of 13.70% in 2023 after a gradual increase. Further analysis would be required to understand the specific factors driving these fluctuations in the operating ROA.
Peer comparison
Aug 31, 2023