Lennar Corporation (LEN)

Short-term

Turnover ratios

Lennar Corporation's inventory turnover ratio has shown fluctuating trends over the past few periods, ranging from 0.02 to 1.05. The lowest turnover indicates a slow movement of inventory, which may lead to holding excess inventory levels. However, the higher turnover ratios seen in some periods suggest efficient inventory management. It is important for Lennar to closely monitor and optimize its inventory levels to enhance profitability.

Unfortunately, data on receivables turnover and payables turnover ratios are not available in the provided table. These ratios are crucial for assessing how efficiently Lennar collects receivables from customers and manages its payables to suppliers.

The working capital turnover ratio has varied significantly, with values ranging from 0.93 to 21.96. A higher ratio signifies that Lennar is effectively utilizing its working capital to generate sales, while a lower ratio may indicate inefficiencies in working capital management. The substantial fluctuations in this ratio warrant a closer examination of Lennar's working capital practices to ensure optimal performance and sustainable growth.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Lennar Corporation varies significantly over the periods provided, ranging from as high as 20,366 days to as low as 348 days. This ratio measures how many days, on average, the company holds inventory before selling it. Higher DOH values suggest slower inventory turnover, potentially indicating excess inventory or inefficiencies in inventory management.

For the Days of Sales Outstanding (DSO) ratio, there is no data available, which makes it challenging to assess how efficiently the company is collecting receivables. A lower DSO indicates faster collection of receivables, while a high DSO could signal potential issues with credit policies or collection efforts.

Similarly, there is no information provided for the Number of Days of Payables ratio, making it impossible to analyze the company's payment practices and relationships with suppliers. A longer payable period may benefit cash flow but could strain relationships with suppliers if not managed effectively.

In conclusion, while the Days of Inventory on Hand ratio provides some insights into Lennar Corporation's inventory management efficiency, the lack of data for DSO and the Number of Days of Payables hinders a comprehensive analysis of the company's overall activity ratios and working capital management.

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Long-term

Lennar Corporation's long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate sales. The fixed asset turnover ratio indicates the company's ability to generate sales from its investment in fixed assets such as property, plant, and equipment.

From the data provided, we observe fluctuations in the fixed asset turnover ratio over the periods analyzed, with the ratio ranging from a low of 54.65 to a high of 210.10. A higher fixed asset turnover ratio generally indicates better efficiency in utilizing fixed assets to generate revenue. Lennar Corporation exhibited varying levels of efficiency in this aspect over the periods analyzed.

The total asset turnover ratio, on the other hand, reflects how effectively the company is using all its assets to generate sales. The total asset turnover ratio ranged from 0.62 to 0.90 during the periods under review. A higher total asset turnover ratio signifies that the company is generating more sales relative to its total assets.

Overall, Lennar Corporation's long-term activity ratios show fluctuations in efficiency in utilizing both fixed assets and total assets to generate sales over the periods analyzed. It is essential for investors and analysts to monitor these ratios over time to assess the company's operational efficiency and potential for sustainable growth.