Lindsay Corporation (LNN)
Return on assets (ROA)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,379 | 65,469 | 42,572 | 38,629 | 2,172 |
| Total assets | US$ in thousands | 745,660 | 710,653 | 637,185 | 570,526 | 500,314 |
| ROA | 9.71% | 9.21% | 6.68% | 6.77% | 0.43% |
August 31, 2023 calculation
ROA = Net income ÷ Total assets
= $72,379K ÷ $745,660K
= 9.71%
Lindsay Corporation's return on assets (ROA) has shown a consistent improvement over the last five years, indicating the company's effective utilization of its assets to generate profits.
In 2019, the ROA was 0.43%, and it steadily increased to 6.68% in 2021. This substantial improvement suggested that the company's management was becoming more efficient in generating earnings from its assets. By 2023, the ROA further improved to 9.71%, signaling a significant enhancement in the company's ability to generate profits relative to its asset base.
A rising ROA indicates that Lindsay Corporation has been effectively managing its assets to increase profits. It also suggests that the company is employing its assets efficiently to drive earnings, which bodes well for the overall financial health and operational efficiency of the company.
Overall, this positive trend in ROA reflects the company's ability to generate more earnings per dollar of assets, which is a key indicator of operational efficiency and financial performance.
Peer comparison
Aug 31, 2023