Lindsay Corporation (LNN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 97,903 | 101,140 | 104,194 | 102,952 | 112,834 | 106,386 | 92,124 | 76,524 | 62,294 | 57,718 | 55,138 | 65,823 | 56,953 | 49,245 | 53,602 | 37,441 | 28,377 | 16,457 | 6,902 | 10,547 |
| Interest expense (ttm) | US$ in thousands | 3,548 | 3,756 | 3,788 | 3,819 | 3,877 | 4,015 | 4,269 | 4,512 | 4,684 | 4,713 | 4,751 | 4,769 | 4,788 | 4,774 | 4,759 | 4,789 | 4,761 | 4,748 | 4,767 | 4,737 |
| Interest coverage | 27.59 | 26.93 | 27.51 | 26.96 | 29.10 | 26.50 | 21.58 | 16.96 | 13.30 | 12.25 | 11.61 | 13.80 | 11.89 | 10.32 | 11.26 | 7.82 | 5.96 | 3.47 | 1.45 | 2.23 |
February 29, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $97,903K ÷ $3,548K
= 27.59
The interest coverage ratio for Lindsay Corporation has shown fluctuating trends over the past few quarters. The ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In the most recent period, the interest coverage ratio stood at 27.59, suggesting that the company's EBIT was 27.59 times higher than its interest expenses. This indicates a strong ability to meet interest obligations and signifies a healthy financial position.
Looking at the historical data, we observe that the interest coverage ratio has generally been above 10, which is considered a good benchmark for financial stability. However, there have been some fluctuations in the ratio over time, with occasional dips below the 10 threshold.
The company saw a significant increase in its interest coverage ratio in the earlier periods, reaching as high as 29.10. However, there were periods where the ratio dropped to lower levels, such as 5.96 and 3.47, indicating a relatively weaker ability to cover interest expenses during those quarters.
Overall, while there have been fluctuations in Lindsay Corporation's interest coverage ratio, the recent data points to a strong ability to meet interest payments. It is important for the company to continue monitoring and managing its interest expenses to maintain a healthy financial position.
Peer comparison
Feb 29, 2024