Lindsay Corporation (LNN)
Financial leverage ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 745,660 | 710,653 | 637,185 | 570,526 | 500,314 |
| Total stockholders’ equity | US$ in thousands | 455,651 | 393,358 | 338,445 | 298,518 | 268,209 |
| Financial leverage ratio | 1.64 | 1.81 | 1.88 | 1.91 | 1.87 |
August 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $745,660K ÷ $455,651K
= 1.64
The financial leverage ratio, also known as the debt-to-equity ratio, measures the extent to which a company is using debt to finance its operations. A lower ratio indicates lower reliance on debt, while a higher ratio signifies higher leverage and potential financial risk.
Lindsay Corporation's financial leverage ratio has fluctuated over the past five years, decreasing from 1.91 in 2020 to 1.64 in 2023. This suggests a reduction in the company's reliance on debt to finance its operations. The decrease in the ratio indicates a potentially improved financial position, as the company may be using less debt relative to equity.
The trend of decreasing financial leverage ratio may indicate that Lindsay Corporation has been successful in reducing its financial risk by decreasing its reliance on debt. However, it's important to consider the overall debt levels and the company's ability to service its debt obligations to make a comprehensive assessment of its financial leverage.
Peer comparison
Aug 31, 2023