Lennar Corporation (LEN)
Financial leverage ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 39,234,300 | 37,984,300 | 33,207,800 | 29,935,200 | 29,359,500 |
| Total stockholders’ equity | US$ in thousands | 26,580,700 | 24,100,500 | 20,816,400 | 17,994,900 | 15,949,500 |
| Financial leverage ratio | 1.48 | 1.58 | 1.60 | 1.66 | 1.84 |
November 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $39,234,300K ÷ $26,580,700K
= 1.48
The financial leverage ratio of Lennar Corp. has shown a declining trend over the past five years. The ratio decreased from 1.84 in November 2019 to 1.48 in November 2023. This indicates that the company's reliance on debt to finance its assets has decreased over this period. A lower financial leverage ratio suggests a reduced level of financial risk and potentially greater financial stability. It appears that Lennar Corp. has been able to manage its debt levels effectively and improve its capital structure, which could be viewed positively by investors and creditors.
Peer comparison
Nov 30, 2023
Company name
Symbol
Financial leverage ratio
Lennar Corporation
LEN
1.48
Fortune Brands Innovations Inc.
FBIN
2.86
Installed Building Products Inc
IBP
2.96