Lennar Corporation (LEN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,990,210 | 4,311,140 | 3,921,380 | 5,261,470 | 6,570,940 | 4,124,030 | 4,315,840 | 4,274,160 | 4,815,770 | 1,551,330 | 1,553,410 | 1,605,570 | 2,955,680 | 2,779,140 | 2,737,580 | 2,568,800 | 2,863,040 | 2,209,130 | 1,641,920 | 1,052,480 |
| Short-term investments | US$ in thousands | 40,578 | 40,090 | 2,754,820 | 2,408,880 | 37,953 | 37,114 | 36,906 | 36,332 | 35,482 | 35,163 | 34,822 | 34,760 | 41,654 | 41,695 | 41,563 | 41,247 | 53,497 | 53,770 | 745,894 | 61,324 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.93 | 2.43 | 2.51 | 3.13 | 4.05 | 2.42 | 2.56 | 2.89 | 3.00 | 1.02 | 1.02 | 1.24 | 2.27 | 2.29 | 2.37 | 2.52 | 2.81 | 1.98 | 2.31 | 0.94 |
November 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,990,210K
+ $40,578K
+ $—K)
÷ $5,403,370K
= 0.93
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations with its most liquid assets. For Lennar Corporation, the quick ratio has shown some fluctuations over the reported periods.
The trend of the quick ratio for Lennar Corporation demonstrates some variability. It started at a relatively low level of 0.94 on February 29, 2020, indicating that the company had limited liquid assets available to cover its current liabilities. However, there was a notable improvement in the quick ratio to 2.31 on May 31, 2020, and it continued to increase in subsequent periods, reaching a peak of 4.05 on November 30, 2023. This upward trend suggests an enhancement in the company's ability to fulfill its short-term obligations using its quick assets.
After reaching its peak, the quick ratio declined to 0.93 on November 30, 2024, dropping significantly from the previous period. This decrease may raise concerns about the company's liquidity position and its capacity to meet immediate payment obligations without relying on inventory sales or other less liquid assets.
Overall, the quick ratio analysis for Lennar Corporation reveals a fluctuating pattern over the given time frame, indicating varying levels of liquidity and the company's ability to cover short-term liabilities. It is essential for investors and stakeholders to monitor this ratio to assess the company's short-term financial health and liquidity position.
Peer comparison
Nov 30, 2024