Lindsay Corporation (LNN)
Interest coverage
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 79,865 | 92,163 | 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 |
| Interest expense (ttm) | US$ in thousands | 3,234 | 3,367 | 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 |
| Interest coverage | 24.70 | 27.37 | 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 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $79,865K ÷ $3,234K
= 24.70
Lindsay Corporation's interest coverage ratio has shown a generally improving trend over the past few quarters, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt from its operating income.
The interest coverage ratio has ranged from 3.47 to 29.10 over the past 8 quarters, with higher values indicating a stronger ability to cover interest expenses. The company's interest coverage ratio has been consistently above 10, which is generally considered a healthy level, reflecting the company's strong operating performance and profitability.
It is important to note that a higher interest coverage ratio suggests lower financial risk as the company has more than enough earnings to cover its interest expenses. However, a declining trend in the interest coverage ratio could be a cause for concern as it may indicate deteriorating financial health or increasing debt levels.
Overall, Lindsay Corporation's interest coverage ratio indicates that the company has been effectively managing its debt obligations and should be able to continue meeting its interest payments in the foreseeable future.
Peer comparison
Aug 31, 2024