Lennox International Inc (LII)
Payables 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 |
| Payables | US$ in thousands | 374,700 | 345,800 | 470,100 | 445,000 | 427,300 | 430,500 | 485,600 | 457,300 | 402,100 | 401,600 | 404,900 | 372,900 | 340,300 | 361,000 | 295,000 | 355,000 | 372,400 | 393,000 | 473,600 | 411,900 |
| Payables turnover | 9.17 | 9.96 | 7.27 | 7.71 | 8.04 | 7.75 | 6.57 | 6.73 | 7.48 | 7.30 | 7.16 | 7.27 | 7.62 | 7.18 | 8.80 | 7.60 | 7.32 | 6.89 | 5.71 | 6.68 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,434,200K ÷ $374,700K
= 9.17
Lennox International Inc's payables turnover ratio has been relatively stable over the past eight quarters, with values ranging from 6.57 to 9.96. The higher values indicate that the company is efficient in managing its accounts payables by paying off its suppliers more frequently within a given period. A higher payables turnover ratio suggests that Lennox International Inc has a shorter time frame in settling its outstanding payables, which may be beneficial in terms of managing liquidity and maintaining good relationships with suppliers.
The payables turnover ratio peaked in Q3 2023 at 9.96, indicating that Lennox International Inc effectively managed its payables during that period. However, there was a slight decline in Q4 2023 to 9.16, which may suggest a minor decrease in the speed of paying off suppliers compared to the previous quarter. Despite this slight decrease, the payables turnover ratio remains relatively high and consistent overall, indicating that Lennox International Inc is efficient in managing its accounts payables.
Overall, the trend in Lennox International Inc's payables turnover ratio suggests that the company is effectively managing its accounts payables and maintaining a healthy relationship with its suppliers. It is important for investors and stakeholders to monitor this ratio to assess the company's liquidity management and supplier relationships.
Peer comparison
Dec 31, 2023