Lennox International Inc (LII)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,569,400 | 3,479,700 | 3,407,800 | 3,398,500 | 3,434,200 | 3,442,800 | 3,415,700 | 3,431,300 | 3,433,700 | 3,336,300 | 3,190,300 | 3,076,900 | 3,005,700 | 2,933,200 | 2,900,200 | 2,710,000 | 2,594,100 | 2,592,600 | 2,595,500 | 2,696,900 |
| Inventory | US$ in thousands | 704,800 | 689,200 | 776,300 | 823,400 | 699,100 | 747,900 | 856,000 | 904,100 | 753,000 | 743,400 | 692,800 | 678,900 | 510,900 | 461,000 | 433,800 | 502,300 | 439,400 | 408,700 | 499,700 | 611,800 |
| Inventory turnover | 5.06 | 5.05 | 4.39 | 4.13 | 4.91 | 4.60 | 3.99 | 3.80 | 4.56 | 4.49 | 4.60 | 4.53 | 5.88 | 6.36 | 6.69 | 5.40 | 5.90 | 6.34 | 5.19 | 4.41 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,569,400K ÷ $704,800K
= 5.06
The inventory turnover ratio of Lennox International Inc has shown some variation over the past few years. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times the inventory is sold and replaced during a specific period.
From March 31, 2020, to December 31, 2021, the inventory turnover ratio of Lennox International increased steadily from 4.41 to 5.88, peaking at 6.69 on June 30, 2021. This upward trend suggests that Lennox International was able to sell its inventory more frequently during this period.
However, from March 31, 2022, to December 31, 2024, the inventory turnover ratio fluctuated within a narrower range, with values ranging between 3.80 and 5.06. The ratio seemed to have stabilized around 4.5, indicating that the efficiency in managing inventory was maintained at a moderate level during this period.
The decrease in inventory turnover ratio from the peak in June 2021 to the lowest point in March 31, 2023, followed by a slight recovery, may suggest changes in the company's sales patterns, inventory management practices, or market demand dynamics.
Overall, it is important for Lennox International Inc to continue monitoring and managing its inventory effectively to ensure optimal utilization of resources and maximize profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024