Lennox International Inc (LII)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,981,900 | 4,718,400 | 4,194,100 | 3,634,100 | 3,807,200 |
| Receivables | US$ in thousands | 594,600 | 608,500 | 508,300 | 448,300 | 477,800 |
| Receivables turnover | 8.38 | 7.75 | 8.25 | 8.11 | 7.97 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,981,900K ÷ $594,600K
= 8.38
The receivables turnover ratio indicates how efficiently Lennox International Inc is collecting its accounts receivable during a specific period. Over the past five years, the trend in Lennox International Inc's receivables turnover has been relatively stable, ranging from 7.75 to 8.38.
The increasing trend in the receivables turnover ratio from 7.75 in 2019 to 8.38 in 2023 suggests that Lennox International Inc has been able to collect its receivables more frequently and efficiently over this period. This improvement may indicate effective credit policies, prompt collection efforts, or better management of accounts receivable.
An average receivables turnover ratio of around 8.1 over the five-year period indicates that Lennox International Inc collects its outstanding receivables approximately 8.1 times a year, on average. This suggests a relatively healthy liquidity position, as the company is converting its accounts receivable into cash at a consistent pace.
Overall, the trend in Lennox International Inc's receivables turnover ratio reflects an effective management of its accounts receivable and suggests sound financial health in terms of its ability to collect outstanding payments in a timely manner.
Peer comparison
Dec 31, 2023