Lennar Corporation (LEN)
Financial leverage ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 41,312,800 | 39,234,300 | 37,984,300 | 33,207,800 | 29,935,200 |
| Total stockholders’ equity | US$ in thousands | 27,870,100 | 26,580,700 | 24,100,500 | 20,816,400 | 17,994,900 |
| Financial leverage ratio | 1.48 | 1.48 | 1.58 | 1.60 | 1.66 |
November 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,312,800K ÷ $27,870,100K
= 1.48
Based on the data provided, Lennar Corporation's financial leverage ratio has been gradually decreasing from 1.66 in November 2020 to 1.48 in both November 2023 and November 2024. This indicates that the company has been effectively managing its financial leverage over the years, reflecting a lower level of debt relative to its equity.
A financial leverage ratio of less than 1 signifies that the company relies more on equity financing rather than debt to fund its operations and growth. In Lennar Corporation's case, the decreasing trend in the ratio indicates a strengthening financial position and reduced financial risk, as the company is becoming less dependent on debt to finance its activities.
Overall, the decreasing trend in Lennar Corporation's financial leverage ratio is a positive sign for investors and stakeholders, suggesting a more stable and sustainable capital structure for the company. It signifies prudent financial management and a healthier balance between debt and equity in the company's capital mix.
Peer comparison
Nov 30, 2024