Lennar Corporation (LEN)
Return on total capital
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,149,930 | 5,177,870 | 5,978,030 | 5,785,840 | 3,482,210 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 27,870,100 | 26,580,700 | 24,100,500 | 20,816,400 | 17,994,900 |
| Return on total capital | 18.48% | 19.48% | 24.80% | 27.79% | 19.35% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,149,930K ÷ ($—K + $27,870,100K)
= 18.48%
Lennar Corporation's Return on Total Capital has shown fluctuations over the past five years based on the data provided. The ratio increased from 19.35% in November 2020 to 27.79% in November 2021, indicating an improvement in the company's ability to generate returns from its total capital. However, in the following years, the return on total capital decreased to 24.80% in November 2022, 19.48% in November 2023, and further to 18.48% in November 2024.
The downward trend in return on total capital suggests that Lennar Corporation may be experiencing challenges in optimizing its capital resources efficiently to generate adequate returns. It is crucial for the company to closely monitor and manage its capital utilization to enhance profitability and value creation for its stakeholders. Further analysis of the underlying factors influencing this ratio's movement could provide valuable insights into Lennar Corporation's overall financial performance and strategic direction.
Peer comparison
Nov 30, 2024