Lennar Corporation (LEN)
Solvency ratios
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.48 | 1.45 | 1.44 | 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 |
Lennar Corporation's solvency ratios, including the Debt-to-Assets Ratio, Debt-to-Capital Ratio, Debt-to-Equity Ratio, and Financial Leverage Ratio, have shown consistent stability and improvement over the years.
The Debt-to-Assets Ratio has consistently remained at 0.00, indicating that the company has not relied heavily on debt to finance its assets. This signifies a strong financial position and lower risk of insolvency.
Similarly, the Debt-to-Capital Ratio and Debt-to-Equity Ratio have also maintained a steady trend at 0.00, highlighting that Lennar Corporation has effectively managed its debt levels in comparison to its capital and equity.
The Financial Leverage Ratio has shown a declining trend from 1.82 in February 2020 to 1.48 in November 2024. This decrease indicates that the company has been reducing its reliance on debt financing over the years, which is a positive sign for investors and creditors.
Overall, based on these solvency ratios, Lennar Corporation appears to have a strong financial position with a low debt burden, stable capital structure, and effective management of leverage, suggesting a lower risk of financial distress.
Coverage ratios
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 34,796.81 | 5,762.66 | 14,443.16 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The interest coverage ratio for Lennar Corporation, as indicated by the financial data provided, shows a significant improvement over the period from May 31, 2024, to November 30, 2024.
The interest coverage ratio is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expenses incurred during a specific period. A higher interest coverage ratio signifies that the company is more capable of meeting its interest obligations from its operating income.
In May 31, 2024, the interest coverage ratio was $14,443.16, which indicates that Lennar Corporation could cover its interest expenses approximately 14 times over. By August 31, 2024, the interest coverage ratio improved even further to $5,762.66, implying that the company's ability to cover its interest payments strengthened, although the ratio decreased in value.
However, by November 30, 2024, there was a noticeable surge in the interest coverage ratio to $34,796.81, indicating a significant increase in the company's ability to cover its interest expenses from its operating earnings. This substantial improvement suggests a positive financial performance and a greater ability to service debt obligations.
Overall, the trend demonstrates a positive development in the interest coverage ratio for Lennar Corporation, signaling an enhanced financial health and a strengthened capability to meet interest payments, particularly evident by the substantial improvement observed in the November 30, 2024, data point.