Lennox International Inc (LII)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 2,727,500 | 2,709,400 | 2,703,100 | 2,749,900 |
| Inventory | US$ in thousands | 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 | 544,100 | 585,300 | 630,200 | 600,100 |
| Inventory turnover | 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 | 5.01 | 4.63 | 4.29 | 4.58 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,434,200K ÷ $699,100K
= 4.91
The inventory turnover ratio for Lennox International Inc has shown some variability over the past eight quarters. The ratio measures how efficiently the company is managing its inventory by indicating the number of times inventory is sold and replaced over a period.
In Q4 2023, the inventory turnover ratio was 4.91, an improvement from the previous quarter of 4.60 in Q3 2023. This suggests that Lennox International Inc was able to sell and replace its inventory more quickly at the end of 2023.
Looking at the trend over the past year, the inventory turnover ratio has ranged between 3.80 and 4.91, with some fluctuations. Generally, the ratios have been stable, hovering around the 4.50 mark.
A high inventory turnover ratio indicates efficient inventory management, while a low ratio may suggest overstocking or slow sales. Lennox International Inc's average inventory turnover ratio of around 4.50 indicates a healthy balance between sales and inventory levels.
Overall, the company appears to be effectively managing its inventory, with the latest ratio showing an improvement compared to previous quarters. However, it is important to continue monitoring this ratio to ensure efficient inventory management practices are maintained.
Peer comparison
Dec 31, 2023
Dec 31, 2023