Lindsay Corporation (LNN)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 765,280 | 763,918 | 745,660 | 723,618 | 709,080 | 708,296 | 710,653 | 711,916 | 676,584 | 649,445 | 637,185 | 642,217 | 596,648 | 575,202 | 570,526 | 557,486 | 534,330 | 526,811 | 500,314 | 505,922 |
| 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 |
| Financial leverage ratio | 1.58 | 1.64 | 1.64 | 1.66 | 1.68 | 1.75 | 1.81 | 1.87 | 1.90 | 1.90 | 1.88 | 1.91 | 1.87 | 1.89 | 1.91 | 1.97 | 1.93 | 1.93 | 1.87 | 1.87 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $765,280K ÷ $483,034K
= 1.58
The financial leverage ratio of Lindsay Corporation has shown a fluctuating trend over the past several periods. The ratio has ranged from 1.58 to 1.97, indicating that the company's level of financial leverage has varied. Generally, a higher financial leverage ratio suggests that a company is more reliant on debt to finance its operations and growth, which could potentially lead to higher financial risk.
The trend of the financial leverage ratio for Lindsay Corporation appears to have increased initially from 1.58 to 1.91 over the first few periods, peaking at 1.97 in the middle of the period under review. Subsequently, the ratio decreased to 1.87, showing some fluctuations around this level in the later periods.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio, as it can indicate how effectively the company is utilizing debt to generate returns. Furthermore, a high financial leverage ratio could also imply a higher interest burden and potential risks in times of economic downturns.
Peer comparison
Feb 29, 2024