Lennar Corporation (LEN)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 35,441,450 | 36,462,760 | 35,776,320 | 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 |
| Total current assets | US$ in thousands | 21,350,700 | 28,504,400 | 29,906,300 | 30,941,400 | 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 |
| Total current liabilities | US$ in thousands | 5,403,370 | 1,788,120 | 2,659,070 | 2,447,750 | 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 |
| Working capital turnover | 2.22 | 1.36 | 1.31 | 1.23 | 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 |
November 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $35,441,450K ÷ ($21,350,700K – $5,403,370K)
= 2.22
The working capital turnover ratio for Lennar Corporation has been fluctuating over the years. Starting at a high of 21.96 on February 29, 2020, the ratio steadily decreased to 6.78 by November 30, 2020, indicating a decline in the efficiency of the company's working capital management. From that point onwards, there were slight fluctuations in the ratio, with some improvements seen in the interim periods.
However, from November 30, 2021, the working capital turnover ratio experienced a significant drop to as low as 0.94 on August 31, 2022. This suggests a potential decline in the company's ability to convert working capital into revenue efficiently during that period. It is important to note that a low working capital turnover ratio may indicate inefficiency or liquidity issues within the company.
Towards the end of the period under review, the ratio started to show a slight recovery, reaching a level of 2.22 on November 30, 2024. This could imply improvements in the company's working capital management practices, potentially leading to better utilization of resources to generate revenue.
Overall, the trend in Lennar Corporation's working capital turnover ratio highlights the importance of effectively managing working capital to ensure smooth operations and maximize financial performance.
Peer comparison
Nov 30, 2024