Lennar Corporation (LEN)
Operating return on assets (Operating ROA)
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 33,546,300 | -562,592 | 26,173,700 | 3,482,210 | 2,775,410 |
| Total assets | US$ in thousands | 39,234,300 | 37,984,300 | 33,207,800 | 29,935,200 | 29,359,500 |
| Operating ROA | 85.50% | -1.48% | 78.82% | 11.63% | 9.45% |
November 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $33,546,300K ÷ $39,234,300K
= 85.50%
The operating return on assets (operating ROA) measures a company's ability to generate profits from its assets used in its core business operations. As of November 30, 2023, Lennar Corp.'s operating ROA stands at 13.68%, showing a decrease from the previous year's 17.65%. This decline may indicate a decrease in the company's efficiency in generating profits from its operating assets. However, it is worth noting that the 2023 operating ROA is still higher than the figures reported in 2021, 2020, and 2019, suggesting an overall positive trend in the company's ability to utilize its assets effectively to generate operating profits. Further analysis of the company's operational and financial strategies would be necessary to better understand the underlying factors contributing to these fluctuations in operating ROA.
Peer comparison
Nov 30, 2023