Lindsay Corporation (LNN)
Return on total capital
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 104,163 | 92,137 | 55,137 | 53,602 | 6,874 |
| Long-term debt | US$ in thousands | 115,164 | 115,341 | 115,514 | 115,682 | 115,846 |
| Total stockholders’ equity | US$ in thousands | 455,651 | 393,358 | 338,445 | 298,518 | 268,209 |
| Return on total capital | 18.25% | 18.11% | 12.15% | 12.94% | 1.79% |
August 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $104,163K ÷ ($115,164K + $455,651K)
= 18.25%
Lindsay Corporation's return on total capital has shown fluctuating trends over the past five years. In 2019, the company reported a return on total capital of 1.59%, which increased significantly to 13.08% in 2020. However, the return decreased to 11.91% in 2021 before experiencing a slight recovery to 18.60% in 2022. The most recent data for 2023 shows a return on total capital of 17.89%.
The fluctuations in return on total capital indicate varying efficiency in utilizing the company's total capital to generate profits. It is important for stakeholders to closely monitor this metric to assess the company's ability to generate returns on the total capital invested. The company should analyze the factors contributing to the fluctuations and implement strategies to maintain stable and favorable returns on total capital in the future.
Peer comparison
Aug 31, 2023