Lennox International Inc (LII)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,341,300 | 4,981,900 | 4,718,400 | 4,194,100 | 3,634,100 |
| Property, plant and equipment | US$ in thousands | 800,100 | 720,400 | 548,900 | 515,100 | 464,300 |
| Fixed asset turnover | 6.68 | 6.92 | 8.60 | 8.14 | 7.83 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,341,300K ÷ $800,100K
= 6.68
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. In the case of Lennox International Inc, the trend of fixed asset turnover over the past five years shows an overall positive trajectory, increasing from 7.83 in December 31, 2020, to 8.60 in December 31, 2022. This implies that the company has been able to efficiently utilize its fixed assets to generate sales revenue.
However, there was a slight decrease in fixed asset turnover to 6.92 in December 31, 2023, followed by a further decline to 6.68 in December 31, 2024. This decline may indicate challenges in asset utilization or changes in the company's operations that affected its ability to generate revenue from its fixed assets efficiently.
Overall, Lennox International Inc's fixed asset turnover ratio indicates that the company has been effectively leveraging its fixed assets to generate revenue, although there have been fluctuations in performance over the years. Further analysis of operational efficiency and asset management practices may be necessary to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024