Lennox International Inc (LII)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,981,900 | 4,920,900 | 4,799,500 | 4,754,400 | 4,718,400 | 4,589,400 | 4,404,400 | 4,277,100 | 4,194,200 | 4,143,400 | 4,138,500 | 3,840,800 | 3,634,100 | 3,605,100 | 3,583,000 | 3,740,800 | 3,807,300 | 3,765,900 | 3,763,200 | 3,839,500 |
| Property, plant and equipment | US$ in thousands | 720,400 | 602,100 | 608,500 | 567,200 | 548,900 | 520,400 | 519,500 | 518,300 | 515,100 | 480,300 | 476,000 | 466,400 | 464,300 | 444,900 | 441,200 | 442,100 | 445,400 | 418,800 | 418,000 | 411,700 |
| Fixed asset turnover | 6.92 | 8.17 | 7.89 | 8.38 | 8.60 | 8.82 | 8.48 | 8.25 | 8.14 | 8.63 | 8.69 | 8.23 | 7.83 | 8.10 | 8.12 | 8.46 | 8.55 | 8.99 | 9.00 | 9.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,981,900K ÷ $720,400K
= 6.92
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales using its fixed assets efficiently. It is calculated by dividing net sales by average fixed assets.
Analyzing Lennox International Inc's fixed asset turnover over the past eight quarters, we can observe fluctuations in the ratio. The trend shows that the ratio has been relatively stable, ranging from a low of 6.92 in Q4 2023 to a high of 8.82 in Q3 2022.
A high fixed asset turnover ratio indicates that Lennox International Inc is effectively utilizing its fixed assets to generate sales. This indicates efficient asset management and suggests that the company is achieving high sales volume relative to its investment in fixed assets.
Overall, the consistent high fixed asset turnover ratios suggest that Lennox International Inc is efficiently utilizing its fixed assets to drive sales, which is a positive indicator of the company's operational efficiency and effectiveness in managing its assets.
Peer comparison
Dec 31, 2023