Lennar Corporation (LEN)
Return on total capital
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,327,268 | 5,177,871 | 5,135,641 | 5,487,511 | 6,088,351 | 6,110,444 | 5,951,194 | 6,057,124 | 5,506,664 | 6,153,590 | 5,836,560 | 4,863,734 | 4,421,662 | 3,482,201 | 3,203,830 | 3,011,854 | 2,887,338 | 2,775,406 | 3,030,717 | 2,836,937 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 15,949,500 | 15,371,900 | 15,159,300 |
| Return on total capital | 19.99% | 19.48% | 20.02% | 21.94% | 24.93% | 25.35% | 25.90% | 28.04% | 26.63% | 29.56% | 28.26% | 24.85% | 23.40% | 19.35% | 18.66% | 18.21% | 18.00% | 17.40% | 19.72% | 18.71% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,327,268K ÷ ($—K + $26,647,800K)
= 19.99%
Based on the data provided for Lennar Corporation's return on total capital over the specified periods, we observe fluctuations in the ratio. The return on total capital ranged from a low of 17.40% in February 2020 to a high of 29.56% in August 2021. The trend indicates variability in the company's efficiency in generating profits from its total capital employed.
The return on total capital was relatively stable around the mid-20% range in recent periods, suggesting that Lennar has been effectively utilizing its capital to generate returns for its shareholders. The ratio peaked at 29.56% in August 2021, indicating a strong performance in capital efficiency at that time.
Overall, Lennar Corporation's return on total capital has shown resilience and an ability to generate favorable returns on its total capital base, albeit with variations over the periods analyzed. This metric is crucial in evaluating the company's effectiveness in deploying its capital to generate profits and create value for its investors.
Peer comparison
Feb 29, 2024