Lennar Corporation (LEN)
Working capital turnover
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,233,400 | 33,671,000 | 27,130,700 | 22,488,900 | 22,259,600 |
| Total current assets | US$ in thousands | 27,530,100 | 26,745,200 | 21,962,700 | 4,353,140 | 3,090,940 |
| Total current liabilities | US$ in thousands | 1,631,400 | 1,616,130 | 1,321,250 | 1,037,340 | 1,069,180 |
| Working capital turnover | 1.32 | 1.34 | 1.31 | 6.78 | 11.01 |
November 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $34,233,400K ÷ ($27,530,100K – $1,631,400K)
= 1.32
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Lennar Corp.'s working capital turnover has shown a fluctuating trend over the past five years, ranging from 1.15 to 1.35.
The slight decrease in the working capital turnover ratio from 1.35 in 2022 to 1.34 in 2023 may indicate a slightly reduced efficiency in utilizing working capital to generate sales. However, it is important to note that the overall trend has been relatively stable, indicating consistent management of working capital.
A higher ratio suggests better efficiency in managing working capital, while a lower ratio may indicate inefficiency. This suggests that Lennar Corp. has generally been effective in leveraging its working capital to drive sales. However, it is important to consider other factors such as industry benchmarks and the company's specific operating environment for a comprehensive assessment.
Peer comparison
Nov 30, 2023