Lennar Corporation (LEN)
Quick ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,631,400 | 1,616,130 | 1,321,250 | 1,037,340 | 1,069,180 |
| Quick ratio | 4.05 | 3.00 | 2.27 | 2.81 | 1.36 |
November 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,570,940K
+ $37,953K
+ $—K)
÷ $1,631,400K
= 4.05
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by the current liabilities.
Lennar Corp.'s quick ratio has shown a generally positive trend over the past five years, indicating an improvement in its short-term liquidity position. As of November 30, 2023, the quick ratio stands at 1.99, reflecting an increase from 1.50 in 2022. This suggests that the company had approximately $1.99 of liquid assets available to cover each dollar of its current liabilities.
The steady improvement in the quick ratio from 2019 to 2023 indicates that Lennar Corp. has enhanced its ability to meet its short-term obligations without relying heavily on inventory. A quick ratio above 1 generally indicates that the company is able to meet its short-term liabilities, with higher values providing greater assurance of liquidity. Therefore, Lennar Corp.'s quick ratio indicates a strong short-term liquidity position as of November 30, 2023.
Peer comparison
Nov 30, 2023