Lindsay Corporation (LNN)
Debt-to-capital ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.20 | 0.23 | 0.25 | 0.28 | 0.30 |
August 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $115,164K ÷ ($115,164K + $455,651K)
= 0.20
The debt-to-capital ratio for Lindsay Corporation has exhibited a declining trend over the past five years, decreasing from 0.30 in 2019 to 0.20 in 2023. This indicates an improvement in the company's capital structure and a decreasing reliance on debt to finance its operations. The declining ratio suggests that the company has been reducing its debt relative to its total capital, which can be perceived as a positive indicator of financial health and risk management. It is important to note that a lower debt-to-capital ratio implies a lower financial risk and can potentially enhance the company's ability to attract investors and access credit on favorable terms.
Peer comparison
Aug 31, 2023