Lennar Corporation (LEN)

Lennar Corporation's solvency ratios indicate a consistently strong financial position over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been recorded at 0.00% from November 30, 2020, to November 30, 2024. This suggests that Lennar has effectively managed its debt levels in relation to its assets and equity, indicating a low financial risk and a healthy balance sheet structure.

Additionally, the financial leverage ratio has shown a decreasing trend, declining from 1.66 in November 30, 2020, to 1.48 in November 30, 2024. This decreasing trend demonstrates that Lennar has been progressively reducing its reliance on debt financing in relation to its equity, which is a positive sign for the company's long-term solvency and stability.

Overall, Lennar Corporation's solvency ratios reflect a solid financial position, with low debt levels relative to assets, capital, and equity, coupled with a decreasing financial leverage ratio over the years, indicating prudent financial management and a strong foundation for future growth and sustainability.

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Coverage ratios

The interest coverage ratio for Lennar Corporation has steadily improved over the last few years. As of November 30, 2024, the interest coverage ratio stands at an impressive 34,796.82, indicating that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses. This high interest coverage ratio suggests that Lennar Corporation has a strong ability to meet its interest obligations comfortably, reflecting a healthy financial position and a reduced risk of financial distress related to interest payments. However, it is important to note that the lack of data for the previous years makes it challenging to assess the trend in interest coverage over the entire period.