Lindsay Corporation (LNN)
Return on total capital
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 97,903 | 101,140 | 104,194 | 102,952 | 112,834 | 106,386 | 92,124 | 76,524 | 62,294 | 57,718 | 55,138 | 65,823 | 56,953 | 49,245 | 53,602 | 37,441 | 28,377 | 16,457 | 6,902 | 10,547 |
| Long-term debt | US$ in thousands | 115,075 | 115,120 | 115,164 | 115,209 | 115,253 | 115,297 | 115,341 | 115,384 | 115,428 | 115,471 | 115,514 | 115,557 | 115,599 | 115,641 | 115,682 | 115,723 | 115,765 | 115,805 | 115,846 | 115,885 |
| Total stockholders’ equity | US$ in thousands | 483,034 | 466,860 | 455,651 | 436,796 | 422,272 | 404,788 | 393,358 | 380,770 | 356,538 | 341,943 | 338,445 | 336,173 | 319,024 | 303,901 | 298,518 | 282,958 | 277,327 | 273,000 | 268,209 | 270,394 |
| Return on total capital | 16.37% | 17.38% | 18.25% | 18.65% | 20.99% | 20.46% | 18.11% | 15.42% | 13.20% | 12.62% | 12.15% | 14.57% | 13.10% | 11.74% | 12.94% | 9.39% | 7.22% | 4.23% | 1.80% | 2.73% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $97,903K ÷ ($115,075K + $483,034K)
= 16.37%
Lindsay Corporation's return on total capital has shown some fluctuations over the past several quarters. The return on total capital was relatively stable around the range of 12-14% from May 2021 to November 2022, with a slight increase noted in February 2023 to 20.99%. However, this peak was followed by a dip in May 2023 to 18.65%, indicating some variability in the company's capital efficiency.
The return on total capital then decreased further to 16.37% in February 2024, continuing a downward trend from the peak seen in February 2023. Despite this decline, Lindsay Corporation's return on total capital has generally shown positive performance, with only a few quarters showing returns below 10%, such as in May 2020 and February 2020.
Overall, the company's return on total capital has demonstrated a positive trend over the periods analyzed, with some fluctuations that may be influenced by various factors affecting the company's operational and financial performance. It is essential for investors and stakeholders to closely monitor these trends to assess the company's efficiency in generating returns relative to its total capital investment.
Peer comparison
Feb 29, 2024