Lennar Corporation (LEN)
Working capital 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 |
| Total current assets | US$ in thousands | 29,072,600 | 31,323,800 | 26,745,200 | 21,962,700 | 4,353,140 |
| Total current liabilities | US$ in thousands | 1,839,440 | 1,631,400 | 1,616,130 | 1,321,250 | 1,037,340 |
| Working capital turnover | 1.30 | 1.15 | 1.34 | 1.31 | 6.78 |
November 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $35,441,500K ÷ ($29,072,600K – $1,839,440K)
= 1.30
The working capital turnover ratio of Lennar Corporation has shown a significant decline over the past few years. In November 30, 2020, the ratio stood at an impressive 6.78, indicating that the company was effectively utilizing its working capital to generate revenue. However, there has been a noticeable downward trend since then.
By November 30, 2024, the working capital turnover ratio had decreased to 1.30. This suggests that Lennar Corporation's efficiency in utilizing its working capital to generate revenue has declined considerably over the years. A working capital turnover ratio below 1 typically indicates that the company is not effectively utilizing its working capital to support its sales and operations.
It is important for Lennar Corporation to closely monitor and improve its working capital management practices to ensure optimal utilization of resources and improve its overall financial performance in the future.
Peer comparison
Nov 30, 2024