Lennar Corporation (LEN)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,932,525 | 4,197,605 | 4,143,935 | 4,061,318 | 3,938,518 | 3,899,668 | 4,258,008 | 4,707,074 | 4,614,121 | 4,482,171 | 4,421,721 | 3,932,324 | 4,430,113 | 4,122,383 | 3,381,911 | 3,067,954 | 2,465,036 | 2,256,580 | 2,103,528 | 2,007,594 |
| Total stockholders’ equity | US$ in thousands | 27,870,100 | 27,412,500 | 26,877,900 | 26,647,800 | 26,580,700 | 25,656,600 | 25,015,100 | 24,418,300 | 24,100,500 | 22,977,300 | 21,598,300 | 20,679,100 | 20,816,400 | 20,650,200 | 19,576,100 | 18,896,200 | 17,994,900 | 17,172,100 | 16,542,700 | 16,044,600 |
| ROE | 14.11% | 15.31% | 15.42% | 15.24% | 14.82% | 15.20% | 17.02% | 19.28% | 19.15% | 19.51% | 20.47% | 19.02% | 21.28% | 19.96% | 17.28% | 16.24% | 13.70% | 13.14% | 12.72% | 12.51% |
November 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,932,525K ÷ $27,870,100K
= 14.11%
Return on equity (ROE) is an important financial ratio that measures a company's profitability by evaluating how effectively it is utilizing shareholders' equity to generate profits. Analyzing the ROE trend of Lennar Corporation from February 29, 2020, to November 30, 2024, reveals fluctuations in the company's performance in this aspect.
The ROE of Lennar Corporation has shown a generally increasing trend over the period, starting at 12.51% on February 29, 2020, and reaching its peak at 21.28% on November 30, 2021. This substantial increase in ROE indicates that the company has been able to generate higher returns for its shareholders relative to its equity base during this period.
However, following the peak in November 2021, Lennar's ROE experienced some fluctuations but remained relatively high, hovering between 15% and 20%. The ROE on November 30, 2024, was reported at 14.11%, slightly lower than the peak observed in November 2021, suggesting a slight dip in the company's profitability compared to the previous periods.
Overall, the increasing trend in ROE from 2020 to 2021 followed by relatively stable but high levels of ROE up to November 2024 indicates that Lennar Corporation has been efficiently utilizing its equity to generate profits and create value for its shareholders during the period under consideration. However, the slight decline in ROE towards the end of the period should be monitored to assess the company's future profitability and effectiveness in utilizing shareholder equity.
Peer comparison
Nov 30, 2024