Lindsay Corporation (LNN)
Debt-to-equity 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-equity ratio | 0.24 | 0.25 | 0.29 | 0.34 | 0.39 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $114,994K ÷ $480,893K
= 0.24
The trend in Lindsay Corporation's debt-to-equity ratio over the past five years indicates a decreasing level of leverage. The ratio has declined steadily from 0.39 in 2020 to 0.24 in 2024. This suggests that the company has been reducing its reliance on debt financing relative to equity financing over the years. A lower debt-to-equity ratio generally indicates a stronger financial position and lower risk of default. This decreasing trend in the ratio may imply improved financial stability and a healthier balance sheet for Lindsay Corporation. It is important for investors and stakeholders to continue monitoring this trend to assess the company's capital structure and financial risk management.
Peer comparison
Aug 31, 2024