Lindsay Corporation (LNN)
Debt-to-equity 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-equity ratio | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | 0.34 | 0.36 | 0.38 | 0.39 | 0.41 | 0.42 | 0.42 | 0.43 | 0.43 |
February 29, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $115,075K ÷ $483,034K
= 0.24
The debt-to-equity ratio of Lindsay Corporation has shown a generally increasing trend over the past several periods, starting at 0.24 as of November 2019 and rising to 0.43 as of May 2021, and remaining relatively stable around that level in subsequent periods. This indicates that the company has been gradually increasing its reliance on debt financing relative to equity financing.
A higher debt-to-equity ratio suggests that the company is financing a larger portion of its operations and investments through debt rather than equity. While this can be advantageous in terms of potentially increasing returns for shareholders through leveraging, it also exposes the company to higher financial risk due to the obligation to pay interest and principal on the debt.
It is important for investors and stakeholders to monitor the debt-to-equity ratio over time to assess the company's financial health and risk profile. A consistently high or increasing ratio may signal potential concerns about the company's ability to meet its debt obligations in the long run and may warrant further investigation into the company's financial management and capital structure decisions.
Peer comparison
Feb 29, 2024