Lindsay Corporation (LNN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 | 0.20 | 0.20 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 |
| Debt-to-capital ratio | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.28 | 0.29 | 0.29 | 0.30 | 0.30 | 0.30 |
| Debt-to-equity ratio | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | 0.34 | 0.36 | 0.38 | 0.39 | 0.41 | 0.42 | 0.42 | 0.43 | 0.43 |
| 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 |
Lindsay Corporation's solvency ratios indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has been relatively stable around 0.15 to 0.23 over the past few periods, suggesting that Lindsay Corporation relies moderately on debt financing to fund its assets.
The debt-to-capital ratio and debt-to-equity ratio have shown a gradually increasing trend, indicating a higher level of financial leverage over time. These ratios have increased from 0.19 to 0.30 and from 0.24 to 0.43, respectively, which may imply a higher financial risk as the company's debt levels relative to its capital and equity have increased.
The financial leverage ratio, which measures the extent to which the company relies on debt to finance its assets, has fluctuated between 1.58 and 1.97 in recent periods. This ratio peaked at 1.97, indicating a significant reliance on debt financing in the company's capital structure.
Overall, the increasing trend in debt-to-capital and debt-to-equity ratios, as well as the fluctuating financial leverage ratio, suggest a potential increase in financial risk and leverage for Lindsay Corporation. It is important for investors and stakeholders to monitor these solvency ratios closely to assess the company's ability to manage its debt and maintain financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Lindsay Corporation has shown a fluctuating trend over the past several periods. The ratio has been consistently above 10 in the recent periods, indicating that the company is able to cover its interest expenses comfortably. The ratio peaked at 29.10 in the period ending February 29, 2020, indicating a strong ability to meet interest obligations.
However, there has been some variability in the interest coverage ratio, with a decrease observed in the period ending May 31, 2020, where the ratio dropped to 7.82. This may suggest a temporary decrease in the company's ability to cover interest expenses efficiently.
Overall, the interest coverage ratio for Lindsay Corporation has generally been healthy, signaling the company's ability to generate sufficient earnings to cover its interest payments. Investors and creditors typically look for a consistent and sufficient interest coverage ratio as it reflects the company's financial stability and ability to service its debt obligations.