Lennox International Inc (LII)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,981,900 | 4,718,400 | 4,194,100 | 3,634,100 | 3,807,200 |
| Property, plant and equipment | US$ in thousands | 720,400 | 548,900 | 515,100 | 464,300 | 445,400 |
| Fixed asset turnover | 6.92 | 8.60 | 8.14 | 7.83 | 8.55 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,981,900K ÷ $720,400K
= 6.92
Fixed asset turnover is a measure of how efficiently Lennox International Inc is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
From the data provided, we observe that Lennox International Inc's fixed asset turnover has fluctuated over the past five years. In 2023, the fixed asset turnover ratio decreased to 6.92 from 8.60 in 2022, indicating a decrease in efficiency in utilizing fixed assets to generate sales. However, despite the decrease, the company still generated $6.92 in sales for every $1 invested in fixed assets in 2023.
Compared to the previous years, Lennox International Inc's fixed asset turnover ratio has shown some variability but has generally remained within a relatively high range, indicating efficient utilization of fixed assets overall. This suggests that the company has been effective in managing and utilizing its fixed assets to generate sales revenue.
Further analysis and comparison with industry benchmarks and overall financial performance would provide more insights into the company's operational efficiency and effectiveness in managing its fixed assets.
Peer comparison
Dec 31, 2023