Lennar Corporation (LEN)
Current ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 16.88 | 16.55 | 16.62 | 4.20 | 2.89 |
November 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $27,530,100K ÷ $1,631,400K
= 16.88
The current ratio for Lennar Corp. has shown a declining trend over the past five years, decreasing from 6.67 in 2019 to 5.02 in 2023. This indicates that the company's ability to cover its short-term liabilities with its current assets has weakened. A declining current ratio can suggest potential liquidity challenges, as a lower ratio implies a reduced ability to pay off short-term obligations. However, it's important to note that the current ratio is still above 1, indicating that Lennar Corp. still possesses an adequate level of current assets to cover its short-term liabilities. Nevertheless, management should closely monitor this trend and take appropriate measures to maintain a healthy level of liquidity.
Peer comparison
Nov 30, 2023