Lennar Corporation (LEN)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 353,834 | 440,170 | 389,642 | 357,412 | 336,923 | 660,725 | 662,138 | 642,593 | 617,901 | 510,816 | 490,201 | 475,711 | 472,581 | 5,547,840 | 10,060,598 | 14,194,941 | 17,740,760 | 18,074,780 | 18,238,500 | 18,537,740 |
| Inventory | US$ in thousands | -18,599 | 20,640,500 | 19,901,500 | 19,942,800 | -37,500 | 22,049,500 | 21,686,800 | 21,627,900 | -33,563 | 22,842,500 | 22,089,500 | 20,592,700 | -11,849 | 19,105,900 | 18,419,000 | 17,692,900 | 16,925,200 | 17,671,300 | 17,947,400 | 19,000,500 |
| Inventory turnover | — | 0.02 | 0.02 | 0.02 | — | 0.03 | 0.03 | 0.03 | — | 0.02 | 0.02 | 0.02 | — | 0.29 | 0.55 | 0.80 | 1.05 | 1.02 | 1.02 | 0.98 |
November 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $353,834K ÷ $-18,599K
= —
Lennar Corporation's inventory turnover ratio has shown a fluctuating pattern over the reported periods. The inventory turnover ratio calculates how many times a company's inventory is sold and replaced over a specific period. A higher ratio is generally preferred as it indicates efficient management of inventory.
From February 2020 to May 2021, Lennar's inventory turnover gradually declined, signaling a potential issue with inventory management or decreasing demand for its products. However, the ratio increased from November 2021 to August 2023, suggesting an improvement in inventory turnover efficiency.
The substantial drop in inventory turnover from August 2023 onwards to November 2024 may indicate challenges in managing inventory levels, which could lead to higher carrying costs or potential obsolescence issues. It is essential for Lennar to address this decline and optimize its inventory management processes to improve overall operational efficiency and profitability.
Peer comparison
Nov 30, 2024
Nov 30, 2024