Lindsay Corporation (LNN)

The solvency ratios of Lindsay Corporation, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, have shown relatively stable trends over the past two years.

The company's debt-to-assets ratio has consistently remained around 0.15 to 0.22, indicating that approximately 15% to 22% of the company's assets are financed by debt. This suggests that Lindsay Corporation relies moderately on debt to fund its operations and investments, with a relatively low level of financial risk.

Similarly, the debt-to-capital ratio has hovered between 0.19 to 0.30 during the same period, demonstrating that the proportion of debt capital in the company's overall capital structure has remained relatively steady. This implies that Lindsay Corporation has maintained a balanced mix of debt and equity financing in its operations.

Furthermore, the debt-to-equity ratio has shown a consistent range of 0.24 to 0.42 over the past two years, indicating that the company's level of financial leverage has been relatively stable. This suggests that the company has maintained a moderate level of leverage in its capital structure, with a reasonable mix of debt and equity to support its business activities.

Lastly, the financial leverage ratio has exhibited a relatively stable trend between 1.58 to 1.97, indicating that the company's level of financial leverage has been consistent over the analyzed period. This ratio further reinforces the notion that Lindsay Corporation has maintained a prudent balance between debt and equity financing.

Overall, the solvency ratios of Lindsay Corporation indicate that the company has managed its debt levels effectively, maintaining a stable and balanced capital structure to support its ongoing operations and growth initiatives.

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Coverage ratios

Lindsay Corporation's interest coverage ratio has been fluctuating over the past few years, with a general trend of improvement. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.

In the most recent period ending August 31, 2024, Lindsay Corporation's interest coverage ratio stood at 24.70, indicating a strong ability to cover its interest expenses. This ratio has generally been above 10 in recent years, which is a positive sign for investors and creditors as it suggests the company is generating sufficient earnings to cover its interest costs.

There was a notable increase in the interest coverage ratio from the end of 2019 to the middle of 2023, where the ratio consistently stayed above 20. This improvement suggests that the company's profitability and/or efficiency in managing its interest expenses improved during this period.

However, it is worth noting that the interest coverage ratio dipped below 10 in some periods, such as in late 2020 and early 2021, which could indicate a potential risk if the company's operating income declines significantly or if interest expenses increase substantially.

Overall, while Lindsay Corporation's interest coverage ratio has shown some variability, the recent trend of maintaining a ratio above 10 indicates a relatively healthy financial position with regards to meeting interest obligations. Investors and creditors should continue to monitor this ratio to assess the company's ability to manage its debt obligations effectively.