Lennar Corporation (LEN)
Operating return on assets (Operating ROA)
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 34,706,300 | 33,546,300 | -562,592 | 26,173,700 | 3,482,210 |
| Total assets | US$ in thousands | 41,312,800 | 39,234,300 | 37,984,300 | 33,207,800 | 29,935,200 |
| Operating ROA | 84.01% | 85.50% | -1.48% | 78.82% | 11.63% |
November 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $34,706,300K ÷ $41,312,800K
= 84.01%
Lennar Corporation's operating return on assets (ROA) has shown significant fluctuations over the period analyzed. In November 2020, the operating ROA stood at 11.63%, which increased substantially to 78.82% by November 2021, indicating a significant improvement in the company's ability to generate operating income from its assets.
However, in November 2022, the operating ROA declined to -1.48%, suggesting that the company's operating income was not sufficient to cover its asset base during that period. This negative ROA might signify operational inefficiencies or financial challenges faced by Lennar Corporation during that fiscal year.
The following years saw a remarkable recovery in the operating ROA for Lennar Corporation. By November 2023, the operating ROA surged to 85.50%, reflecting a significant improvement in the company's operational efficiency and profitability. This positive trend continued in November 2024, with the operating ROA reaching 84.01%.
Overall, Lennar Corporation's operating ROA has displayed notable volatility, with both positive and negative swings. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's operational performance and financial health accurately.
Peer comparison
Nov 30, 2024