Lennox International Inc (LII)
Working capital 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 current assets | US$ in thousands | 1,433,500 | 1,496,500 | 1,175,400 | 1,087,600 | 1,120,900 |
| Total current liabilities | US$ in thousands | 1,014,600 | 1,595,700 | 827,100 | 701,300 | 1,002,700 |
| Working capital turnover | 11.89 | — | 12.04 | 9.41 | 32.21 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,981,900K ÷ ($1,433,500K – $1,014,600K)
= 11.89
The working capital turnover of Lennox International Inc has shown fluctuation over the past five years. In 2019, the company had a significantly high working capital turnover of 32.21, indicating that the company generated $32.21 in revenue for every dollar of working capital invested. This may suggest efficient management of working capital during that year.
In 2020, the working capital turnover decreased to 9.41, which could be due to a change in operating efficiency or a factor impacting the company's ability to generate revenue relative to its working capital. The increase in 2021 to 12.04 indicates an improvement in utilizing working capital effectively to generate revenue.
However, the data for 2022 is missing, which makes it challenging to analyze the trend effectively. The working capital turnover of 11.89 in 2023 indicates a slight decrease compared to the previous year, but it still shows the company's ability to generate revenue relative to its working capital investment.
Overall, it is essential for Lennox International Inc to consistently monitor and manage its working capital turnover to ensure efficient utilization of resources and maximize revenue generation.
Peer comparison
Dec 31, 2023