Lindsay Corporation (LNN)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 760,232 | 745,660 | 710,653 | 637,185 | 570,526 |
| Total stockholders’ equity | US$ in thousands | 480,893 | 455,651 | 393,358 | 338,445 | 298,518 |
| Financial leverage ratio | 1.58 | 1.64 | 1.81 | 1.88 | 1.91 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $760,232K ÷ $480,893K
= 1.58
The financial leverage ratio of Lindsay Corporation has shown a decreasing trend over the past five years. The ratio decreased from 1.91 in August 2020 to 1.58 in August 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company is using less debt relative to equity, which can be seen as a positive sign of financial stability and risk management. It may indicate that Lindsay Corporation has been able to improve its financial position and reduce the potential risks associated with high levels of debt. However, it is important to consider other financial metrics and overall market conditions when evaluating the company's financial leverage position.
Peer comparison
Aug 31, 2024