Lennar Corporation (LEN)
Return on total capital
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,177,870 | 5,978,030 | 5,785,840 | 3,482,210 | 2,775,410 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 26,580,700 | 24,100,500 | 20,816,400 | 17,994,900 | 15,949,500 |
| Return on total capital | 19.48% | 24.80% | 27.79% | 19.35% | 17.40% |
November 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,177,870K ÷ ($—K + $26,580,700K)
= 19.48%
The return on total capital (ROTC) for Lennar Corp. shows a fluctuating trend over the past five years. In November 2023, the ROTC was 16.55%, declining from 22.01% in 2022 but still higher than the 18.88% reported in 2021. This indicates a decrease in the profitability of the company's capital allocation compared to the previous year. However, the ROTC has shown an overall increasing trend since 2019 when it was 9.66%, which suggests a positive long-term performance in generating returns from the total capital employed. It is important for stakeholders to assess the factors influencing this trend to gain a deeper understanding of the company's financial performance.
Peer comparison
Nov 30, 2023