Lennar Corporation (LEN)
Fixed asset turnover
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 35,441,500 | 34,233,400 | 33,671,000 | 27,130,700 | 22,488,900 |
| Property, plant and equipment | US$ in thousands | 516,198 | 404,789 | 355,095 | 339,906 | 411,518 |
| Fixed asset turnover | 68.66 | 84.57 | 94.82 | 79.82 | 54.65 |
November 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $35,441,500K ÷ $516,198K
= 68.66
Based on the data provided, Lennar Corporation's fixed asset turnover has shown a consistent improvement over the years. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets.
In November 2020, the fixed asset turnover was 54.65, indicating that Lennar generated $54.65 in revenue for every dollar invested in fixed assets. This ratio increased to 79.82 by November 2021, suggesting that the company became more efficient in utilizing its fixed assets to generate revenue.
The trend continued with further improvement in the fixed asset turnover ratio to 94.82 in November 2022, signifying Lennar's increasing ability to generate revenue from its fixed asset base. However, by November 2023, the ratio declined slightly to 84.57 before dropping further to 68.66 by November 2024.
Overall, Lennar Corporation has demonstrated a strong ability to generate revenue from its fixed assets, with fluctuations in the fixed asset turnover ratio over the years. It is important for the company to further analyze the factors contributing to these fluctuations to ensure sustained efficiency in utilizing its fixed assets for revenue generation.
Peer comparison
Nov 30, 2024