Lennar Corporation (LEN)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 38,951,200 | 39,234,300 | 37,438,100 | 36,857,700 | 36,573,200 | 37,984,300 | 35,339,900 | 34,306,200 | 32,635,300 | 33,207,800 | 32,744,200 | 31,223,200 | 30,552,000 | 29,935,200 | 29,315,300 | 29,309,000 | 29,173,700 | 29,359,500 | 29,459,400 | 29,583,100 |
| 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 |
| Financial leverage ratio | 1.46 | 1.48 | 1.46 | 1.47 | 1.50 | 1.58 | 1.54 | 1.59 | 1.58 | 1.60 | 1.59 | 1.59 | 1.62 | 1.66 | 1.71 | 1.77 | 1.82 | 1.84 | 1.92 | 1.95 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $38,951,200K ÷ $26,647,800K
= 1.46
Lennar Corporation's financial leverage ratio has shown fluctuations over the past several quarters. The ratio decreased from 1.95 in November 2019 to 1.46 in February 2024, indicating a reduction in financial leverage. However, the ratio increased to 1.77 in May 2020 before reaching a peak of 1.95 in November 2020. Since then, the ratio has generally declined, with some minor fluctuations.
A financial leverage ratio of more than 1 suggests that the company relies more on debt financing than equity financing to fund its operations and growth. While a high leverage ratio can amplify returns on equity, it also increases financial risk due to higher interest payments and debt obligations.
Lennar Corporation's decreasing financial leverage ratio in recent quarters may indicate a shift towards a more conservative approach to capital structure, potentially reducing the company's financial risk. Investors and stakeholders should continue to monitor the trend in the financial leverage ratio to assess the company's overall financial health and risk profile.
Peer comparison
Feb 29, 2024