Lindsay Corporation (LNN)
Interest coverage
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 76,608 | 104,163 | 92,137 | 55,137 | 53,602 |
| Interest expense | US$ in thousands | 3,234 | 3,788 | 4,269 | 4,751 | 4,759 |
| Interest coverage | 23.69 | 27.50 | 21.58 | 11.61 | 11.26 |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $76,608K ÷ $3,234K
= 23.69
The interest coverage ratio for Lindsay Corporation has demonstrated a generally positive trend over the past five years. The ratio increased from 11.26 in the fiscal year ending August 31, 2020, to 27.50 in the fiscal year ending August 31, 2023, indicating a significant improvement in the company's ability to meet its interest obligations through its operating income.
Although there was a slight decrease in the interest coverage ratio to 23.69 in the most recent fiscal year ending August 31, 2024, the company still maintains a strong ability to cover its interest expenses with its operating earnings. This suggests that Lindsay Corporation has a healthy financial position and is less vulnerable to fluctuations in interest rates or operational challenges that could impact its ability to meet its debt obligations.
Peer comparison
Aug 31, 2024