Lennar Corporation (LEN)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 3.95 | 15.94 | 11.25 | 12.64 | 16.88 | 15.57 | 15.48 | 17.62 | 16.55 | 16.01 | 15.39 | 16.99 | 16.62 | 3.28 | 3.20 | 3.53 | 4.20 | 2.89 | 2.71 | 1.88 |
November 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $21,350,700K ÷ $5,403,370K
= 3.95
Lennar Corporation's current ratio has exhibited fluctuations over the past few years, suggesting varying levels of liquidity. The current ratio, which represents the company's ability to cover its short-term liabilities with its current assets, has generally been above the ideal benchmark of 1, indicating a healthy liquidity position.
From February 2019 to May 2021, the current ratio steadily increased from 1.88 to 3.53, indicating an improvement in the company's ability to meet its short-term obligations. However, there was a slight decline in the ratio to 3.20 by May 2021, followed by fluctuations around the 3 mark until August 2022.
Notably, there was a significant spike in the current ratio to 16.99 by February 2022, which suggests a substantial increase in current assets relative to current liabilities. This spike may indicate a temporary increase in liquidity, potentially due to various factors such as increased cash reserves or reduced short-term debt during that period.
Subsequently, the current ratio declined gradually to around 15 by May 2022 and hovered around that level until August 2023. However, there was a noticeable decrease to 11.25 by May 2024, followed by fluctuations in the ratio until November 2024.
In November 2024, the current ratio dropped to 3.95, reflecting a significant decline in liquidity compared to the previous quarter. This drop could be attributed to changes in the company's current asset and liability composition during that period.
Overall, the current ratio of Lennar Corporation has displayed fluctuations over the analyzed period, with some periods showing stronger liquidity positions than others. It is important for investors and stakeholders to consider the trend in the current ratio along with other financial indicators to assess the company's overall financial health and performance.
Peer comparison
Nov 30, 2024