Lindsay Corporation (LNN)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.28 | 0.29 | 0.29 | 0.30 | 0.30 | 0.30 |
February 29, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $115,075K ÷ ($115,075K + $483,034K)
= 0.19
The debt-to-capital ratio of Lindsay Corporation has shown a gradual increasing trend over the past several quarters, indicating a higher reliance on debt to finance its operations and growth. The ratio has increased from 0.19 in February 2020 to 0.30 in May 2019. This suggests that a larger proportion of the company's capital structure is being funded by debt compared to equity.
A rising debt-to-capital ratio may signal potential concerns regarding the company's financial leverage and ability to manage its debt obligations. It could also indicate a lower financial flexibility and higher financial risk, as higher debt levels typically come with increased interest expenses and potential constraints on future investments.
It is important for investors and stakeholders to monitor the debt-to-capital ratio closely, as it provides insights into the company's financial health and risk profile. The management of Lindsay Corporation should focus on maintaining a balanced capital structure to ensure long-term sustainability and growth.
Peer comparison
Feb 29, 2024