Lennox International Inc (LII)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,341,300 | 4,981,900 | 4,718,400 | 4,194,100 | 3,634,100 |
| Total current assets | US$ in thousands | 1,884,200 | 1,433,500 | 1,496,500 | 1,175,400 | 1,087,600 |
| Total current liabilities | US$ in thousands | 1,313,300 | 1,014,600 | 1,595,700 | 827,100 | 701,300 |
| Working capital turnover | 9.36 | 11.89 | — | 12.04 | 9.41 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,341,300K ÷ ($1,884,200K – $1,313,300K)
= 9.36
Working capital turnover is a measure of how efficiently a company utilizes its working capital to generate sales revenue. Lennox International Inc's working capital turnover has shown varying trends over the years:
1. In 2020, the working capital turnover was 9.41, indicating that the company generated $9.41 in revenue for every dollar of working capital.
2. By 2021, there was an improvement in efficiency with a working capital turnover of 12.04, signifying that the company generated $12.04 in revenue for every dollar of working capital, reflecting increased efficiency in managing its working capital.
3. The data for 2022 is unavailable (denoted as "—"), which limits the ability to assess the trend for that year.
4. In 2023, the working capital turnover decreased slightly to 11.89, but still remained at a relatively high level, indicating continued efficiency in working capital management.
5. However, by 2024, there was a notable decrease in the working capital turnover to 9.36, suggesting a potential dip in efficiency in utilizing working capital to generate sales revenue compared to the previous years.
In summary, Lennox International Inc has generally exhibited strong efficiency in its working capital management, as reflected by the working capital turnover ratios over the years, with some fluctuations in performance. It would be important for stakeholders to closely monitor this ratio to ensure optimal utilization of working capital for revenue generation in the future.
Peer comparison
Dec 31, 2024