Lennox International Inc (LII)
Total asset 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 |
| Total assets | US$ in thousands | 2,798,300 | 2,567,600 | 2,171,900 | 2,032,500 | 2,034,900 |
| Total asset turnover | 1.78 | 1.84 | 1.93 | 1.79 | 1.87 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,981,900K ÷ $2,798,300K
= 1.78
The total asset turnover ratio for Lennox International Inc has been fluctuating over the past five years. From 2019 to 2021, the ratio showed a decreasing trend, indicating a lower efficiency in generating sales from its total assets during those years. However, in 2022 and 2023, there was a slight improvement in the total asset turnover ratio, suggesting that the company was able to generate more sales relative to its total assets in those years.
Overall, the average total asset turnover ratio of 1.84 over the five-year period indicates that Lennox International Inc is relatively efficient in utilizing its assets to generate revenue. However, management may want to continue monitoring and improving this ratio to ensure optimal asset management and profitability in the future.
Peer comparison
Dec 31, 2023