Lennar Corporation (LEN)
Quick ratio
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 1,446,000 | 1,069,860 | 1,021,070 |
| Short-term investments | US$ in thousands | 38,315 | 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 | 3,732 | 3,597 | 3,356 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,207,900 | 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 | 1,069,180 | 1,092,710 | 1,243,640 |
| Quick ratio | 0.85 | 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 | 1.36 | 0.98 | 0.82 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,261,470K
+ $38,315K
+ $—K)
÷ $6,207,900K
= 0.85
The quick ratio of Lennar Corporation has shown fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its liquid assets excluding inventory.
In the most recent quarter, as of February 29, 2024, the quick ratio was 0.85, indicating the company may have difficulty meeting its short-term obligations with its most liquid assets alone. This could be a cause for concern as a quick ratio below 1 suggests potential liquidity issues.
However, if we look at the quick ratio over the previous quarters, we see a significant increase from the ratio of 0.94 on February 29, 2020, to the ratio of 4.05 on November 30, 2023, which was the highest in the provided data. This improvement suggests that Lennar Corporation had a strong ability to cover its short-term obligations with its liquid assets during that period.
It is important to analyze the factors contributing to the current low quick ratio and whether it is a temporary situation or a longer-term trend. Investors and analysts should monitor the company's performance and liquidity position closely to assess its financial health and sustainability in the future.
Peer comparison
Feb 29, 2024