Lindsay Corporation (LNN)
Debt-to-capital ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 114,994 | 115,164 | 115,341 | 115,514 | 115,682 |
| Total stockholders’ equity | US$ in thousands | 480,893 | 455,651 | 393,358 | 338,445 | 298,518 |
| Debt-to-capital ratio | 0.19 | 0.20 | 0.23 | 0.25 | 0.28 |
August 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $114,994K ÷ ($114,994K + $480,893K)
= 0.19
The debt-to-capital ratio of Lindsay Corporation has shown a declining trend over the past five years, decreasing from 0.28 in 2020 to 0.19 in 2024. This indicates that the company has been able to reduce its reliance on debt in relation to its total capital over time. A lower debt-to-capital ratio signifies a stronger financial position and lower financial risk for the company. This suggests that Lindsay Corporation has been effectively managing its debt levels and maintaining a healthier balance between debt and equity financing. The decreasing trend in the debt-to-capital ratio may be a positive sign for investors and creditors, as it reflects improved financial stability and solvency for the company.
Peer comparison
Aug 31, 2024