Lennar Corporation (LEN)
Working capital turnover
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 22,259,560 | 21,747,240 | 21,562,750 |
| Total current assets | US$ in thousands | 26,488,900 | 27,530,100 | 26,797,300 | 26,330,200 | 26,268,300 | 26,745,200 | 24,849,900 | 23,941,300 | 22,442,500 | 21,962,700 | 4,033,730 | 3,753,020 | 3,663,400 | 4,353,140 | 3,296,310 | 2,805,280 | 2,223,180 | 3,090,940 | 22,139,600 | 21,833,500 |
| Total current liabilities | US$ in thousands | 6,207,900 | 1,631,400 | 1,721,530 | 1,700,900 | 1,490,810 | 1,616,130 | 1,552,580 | 1,555,280 | 1,321,150 | 1,321,250 | 1,230,580 | 1,171,360 | 1,037,270 | 1,037,340 | 1,140,340 | 1,033,560 | 1,180,710 | 1,069,180 | 1,092,710 | 1,243,640 |
| Working capital turnover | 1.73 | 1.32 | 0.93 | 0.95 | 0.96 | 0.94 | 1.37 | 1.34 | 1.33 | 1.31 | 9.11 | 9.47 | 8.88 | 6.78 | 10.50 | 12.77 | 21.96 | 11.01 | 1.03 | 1.05 |
February 29, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $35,055,880K ÷ ($26,488,900K – $6,207,900K)
= 1.73
Lennar Corporation's working capital turnover ratio fluctuated over the past few years, indicating varying efficiencies in managing its working capital. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.
From February 2019 to February 2020, the ratio remained relatively stable, ranging from 1.03 to 1.05. However, a significant spike was observed in August 2020, soaring to 10.50, and reaching even higher levels of 12.77 in May 2020 and 21.96 in February 2020.
These unusually high values suggest that Lennar Corporation managed to generate a substantial amount of sales relative to its working capital during these periods. Such exceptional performance could be due to efficient inventory management, streamlined accounts receivable, or effective cash flow management.
Conversely, there were periods, such as from May 2021 to August 2023, where the ratio dropped below 1.5. This indicates a lower efficiency in converting working capital into sales revenue during these periods.
Overall, the working capital turnover ratio trend for Lennar Corporation showcases both high and low efficiency levels over the analyzed period, highlighting the company's varying effectiveness in managing its working capital to drive sales.
Peer comparison
Feb 29, 2024