Lindsay Corporation (LNN)
Return on total capital
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 79,865 | 92,163 | 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 |
| Long-term debt | US$ in thousands | 114,994 | 115,029 | 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 |
| Total stockholders’ equity | US$ in thousands | 480,893 | 479,996 | 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 |
| Return on total capital | 13.40% | 15.49% | 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% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $79,865K ÷ ($114,994K + $480,893K)
= 13.40%
The return on total capital for Lindsay Corporation has shown fluctuations over the past several quarters. The return on total capital ranged from a low of 4.23% in February 2020 to a high of 20.99% in February 2023.
Overall, the return on total capital has generally displayed an upward trend, indicating an improvement in the company's efficiency in generating returns from its total capital investments. The company achieved a return on total capital of 13.40% as of August 31, 2024, showing a slight decrease compared to the previous quarter.
It is important for investors and stakeholders to monitor this metric closely as it demonstrates the company's ability to generate profits relative to the total capital employed in its operations. The management should continue to focus on optimizing the utilization of capital to sustain and improve this key financial performance indicator.
Peer comparison
Aug 31, 2024