Lennar Corporation (LEN)
Cash ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,570,940 | 4,815,770 | 2,955,680 | 2,863,040 | 1,446,000 |
| Short-term investments | US$ in thousands | 37,953 | 35,482 | 41,654 | 53,497 | 3,732 |
| Total current liabilities | US$ in thousands | 1,631,400 | 1,616,130 | 1,321,250 | 1,037,340 | 1,069,180 |
| Cash ratio | 4.05 | 3.00 | 2.27 | 2.81 | 1.36 |
November 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,570,940K
+ $37,953K)
÷ $1,631,400K
= 4.05
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Lennar Corp.'s cash ratio has shown a positive trend over the past five years, increasing from 0.93 in 2019 to 1.72 in 2023. This indicates that the company has significantly improved its ability to meet its short-term obligations using its cash reserves. The upward trend suggests that Lennar has effectively managed its liquidity and is in a stronger position to handle its immediate financial responsibilities. This could potentially reflect positively on the company's overall financial health and stability.
Peer comparison
Nov 30, 2023