Lennar Corporation (LEN)

Short-term

Turnover ratios

Lennar Corporation's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory Turnover: As of November 30, 2020, Lennar Corporation had an inventory turnover ratio of 1.05. However, there is no data available for subsequent years, which makes it challenging to assess the trend in managing inventory levels. A higher inventory turnover ratio generally indicates better sales performance and efficient inventory management.

2. Receivables Turnover: Data is not available for receivables turnover for any of the years provided. This ratio typically reflects how effectively a company is collecting on credit sales. A higher turnover ratio typically indicates that the company is collecting its receivables more quickly.

3. Payables Turnover: Similar to receivables turnover, there is no data available for payables turnover for the specified years. The payables turnover ratio helps to assess how well a company is managing its payments to suppliers. A higher ratio suggests that the company is effectively managing its payables.

4. Working Capital Turnover: Lennar Corporation's working capital turnover ratio declined from 6.78 in November 30, 2020, to 1.31 in November 30, 2021, and remained relatively stable in the subsequent years. A decreasing working capital turnover ratio may indicate a declining efficiency in utilizing working capital to generate revenue.

In conclusion, while the data provided offers some insights into Lennar Corporation's activity ratios, the lack of information for certain ratios and years limits a comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

Based on the provided data for Lennar Corporation, the activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- As of November 30, 2020, Lennar had an inventory holding period of 348.22 days, indicating that the company takes approximately 348 days to sell its inventory.
- However, data for subsequent years (2021, 2022, 2023, and 2024) is missing, making it challenging to assess any trend or changes in the efficiency of managing inventory over time.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding data are not provided for any of the years (2020-2024), suggesting that information on how long it takes Lennar to collect its accounts receivable is not available in the dataset.

3. Number of Days of Payables:
- Similar to the DSO ratio, the number of days of payables information is missing for all years from 2020 to 2024. Without this data, it's not possible to determine how long Lennar takes to pay its suppliers and manage its accounts payable effectively.

In conclusion, the absence of data for DSO and days of payables limits the comprehensive assessment of Lennar Corporation's activity ratios, specifically its efficiency in managing receivables, payables, and inventory turnover over the years.

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Long-term

Lennar Corporation's long-term activity ratios reflect how efficiently the company is utilizing its assets over time.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how effectively the company is generating sales from its investment in fixed assets. Lennar's fixed asset turnover has shown an upward trend, increasing from 54.65 in November 2020 to 94.82 in November 2022. This indicates that the company is utilizing its fixed assets more efficiently to generate revenue during this period. However, there was a decrease in the ratio to 68.66 in November 2024, which may suggest a potential decline in the efficiency of utilizing fixed assets to generate sales compared to the earlier years.

2. Total Asset Turnover:
- The total asset turnover ratio measures how well the company is using its total assets to generate revenue. Lennar's total asset turnover ratio has also been generally increasing over the years, from 0.75 in November 2020 to 0.86 in November 2024. This suggests that Lennar is becoming more efficient in generating revenue relative to its total asset base. However, there was a slight dip in the ratio in November 2023 to 0.87, which might indicate a temporary decrease in asset efficiency in that period.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Lennar Corporation has been improving its efficiency in utilizing its assets to generate sales over the years, with some fluctuations observed in certain periods. It is important for the company to continue monitoring and managing its asset utilization to sustain or improve these efficiencies for long-term growth and profitability.