Lennox International Inc (LII)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,341,300 | 5,151,100 | 5,019,300 | 4,979,600 | 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 |
| Property, plant and equipment | US$ in thousands | 800,100 | 754,800 | 740,800 | 759,100 | 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 |
| Fixed asset turnover | 6.68 | 6.82 | 6.78 | 6.56 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,341,300K ÷ $800,100K
= 6.68
The fixed asset turnover ratio is a measure of how efficiently a company is generating revenue from its investment in fixed assets. For Lennox International Inc, the fixed asset turnover has shown a generally decreasing trend from March 31, 2020, to December 31, 2024. The ratio started at a high of 8.46 in March 2020 but gradually declined to 6.68 by December 31, 2024.
A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. On the other hand, a declining ratio may suggest that the company's fixed assets are not being utilized as efficiently to generate revenue over time.
It is important for Lennox International Inc to monitor its fixed asset turnover ratio closely and identify the reasons behind this downward trend. This analysis can help the company make informed decisions regarding its fixed asset utilization, operational efficiency, and overall financial performance.
Peer comparison
Dec 31, 2024