Lindsay Corporation (LNN)
Solvency ratios
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.15 | 0.16 | 0.18 | 0.20 |
| Debt-to-capital ratio | 0.19 | 0.20 | 0.23 | 0.25 | 0.28 |
| Debt-to-equity ratio | 0.24 | 0.25 | 0.29 | 0.34 | 0.39 |
| Financial leverage ratio | 1.58 | 1.64 | 1.81 | 1.88 | 1.91 |
Lindsay Corporation's solvency ratios, as reflected in the data provided, indicate a favorable trend in terms of the company's ability to meet its financial obligations and manage its debt levels. The debt-to-assets ratio has shown a decrease from 0.20 in 2020 to 0.15 in 2024, indicating that the company has been successful in reducing its reliance on debt to finance its assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a downward trend over the five-year period, indicating a decreasing reliance on debt as a source of financing relative to capital and equity. This trend suggests an improvement in the company's financial stability and risk management.
Furthermore, the financial leverage ratio has shown a declining trend, decreasing from 1.91 in 2020 to 1.58 in 2024. This indicates that the company has been able to decrease its financial leverage, which may reduce the financial risks associated with high levels of debt.
Overall, Lindsay Corporation's solvency ratios demonstrate a positive trend, reflecting sound financial management practices and a healthy balance between debt, capital, and equity in the company's financial structure.
Coverage ratios
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 23.69 | 27.50 | 21.58 | 11.61 | 11.26 |
The interest coverage ratio for Lindsay Corporation has shown a fluctuating trend over the past five years. The ratio decreased from 27.50 in 2023 to 23.69 in 2024, indicating a slight reduction in the company's ability to cover its interest expenses with its earnings. However, the ratio remained relatively high, suggesting that Lindsay Corporation has had a strong capacity to meet its interest obligations with its operating income.
Compared to the previous years, the interest coverage ratio was lower in 2024 than in 2023 but still higher than in 2022, indicating some variability in the company's ability to cover its interest expenses. The ratios for both 2024 and 2023 were significantly higher than in 2020 and 2021, reflecting an improvement in Lindsay Corporation's financial performance and ability to service its debt over the past two years.
Overall, the interest coverage ratio for Lindsay Corporation has demonstrated a generally favorable trend, remaining at levels that suggest a healthy financial position and the ability to meet its interest payments comfortably.