Lennar Corporation (LEN)
Fixed asset turnover
| Nov 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 35,441,450 | 36,462,760 | 35,776,320 | 35,055,880 | 34,233,380 | 23,265,225 | 23,470,055 | 23,783,605 | 23,496,695 | 31,930,210 | 29,937,180 | 28,008,720 | 27,130,670 | 25,523,000 | 24,451,850 | 23,308,980 | 22,488,850 | 22,634,490 | 22,621,300 | 22,896,820 |
| Property, plant and equipment | US$ in thousands | 516,198 | — | — | — | 404,789 | 137,822 | 138,746 | 143,457 | 355,095 | 151,975 | 149,772 | 152,066 | 339,906 | 157,164 | 157,444 | 164,604 | 411,518 | 121,728 | 128,423 | 143,690 |
| Fixed asset turnover | 68.66 | — | — | — | 84.57 | 168.81 | 169.16 | 165.79 | 66.17 | 210.10 | 199.89 | 184.19 | 79.82 | 162.40 | 155.31 | 141.61 | 54.65 | 185.94 | 176.15 | 159.35 |
November 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $35,441,450K ÷ $516,198K
= 68.66
The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investment in fixed assets. Based on the provided data for Lennar Corporation, we observe fluctuations in the fixed asset turnover ratio over the period from February 29, 2020, to November 30, 2024.
Lennar's fixed asset turnover ratio saw a significant increase from 159.35 on February 29, 2020, to a peak of 210.10 on August 31, 2022, indicating that the company was generating more sales relative to its investment in fixed assets during this period.
However, the ratio declined sharply to 66.17 on November 30, 2022, suggesting a potential inefficiency in utilizing fixed assets to generate revenue. Subsequently, there was a gradual recovery in the ratio, reaching 169.16 on May 31, 2023. This recovery indicates improved efficiency in generating sales from fixed assets.
The ratio further stabilized around the range of 165-170 from November 2023 to May 2024. However, the data is missing for the period after May 31, 2024. This missing data prevents a comprehensive analysis of the most recent trends in Lennar's fixed asset turnover.
In conclusion, Lennar Corporation experienced fluctuations in its fixed asset turnover ratio over the analyzed period, with notable peaks and declines. It is essential for the company to closely monitor and manage its fixed asset turnover to ensure optimal utilization of assets and maximize revenue generation.
Peer comparison
Nov 30, 2024