Lennox International Inc (LII)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,341,300 | 5,151,100 | 5,019,300 | 4,979,600 | 4,981,900 | 4,920,900 | 4,799,500 | 4,754,400 | 4,718,400 | 4,589,400 | 4,404,400 | 4,277,100 | 4,194,200 | 4,143,400 | 4,138,500 | 3,840,800 | 3,634,100 | 3,605,100 | 3,583,000 | 3,740,800 |
| Total current assets | US$ in thousands | 1,884,200 | 1,831,000 | 1,765,300 | 1,564,500 | 1,433,500 | 1,742,400 | 1,826,800 | 1,671,600 | 1,496,500 | 1,594,100 | 1,629,100 | 1,437,200 | 1,175,400 | 1,184,900 | 1,260,400 | 1,138,200 | 1,087,600 | 1,064,000 | 1,226,900 | 1,225,100 |
| Total current liabilities | US$ in thousands | 1,313,300 | 1,316,000 | 1,104,500 | 1,097,400 | 1,014,600 | 1,255,000 | 1,741,900 | 1,526,400 | 1,595,700 | 931,700 | 967,700 | 859,400 | 827,100 | 1,100,400 | 1,057,800 | 849,100 | 701,300 | 711,000 | 946,200 | 894,600 |
| Working capital turnover | 9.36 | 10.00 | 7.60 | 10.66 | 11.89 | 10.10 | 56.53 | 32.74 | — | 6.93 | 6.66 | 7.40 | 12.04 | 49.03 | 20.43 | 13.29 | 9.41 | 10.21 | 12.76 | 11.32 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,341,300K ÷ ($1,884,200K – $1,313,300K)
= 9.36
Lennox International Inc's working capital turnover has shown fluctuating trends over the past few years. It increased from 11.32 in March 2020 to 20.43 in June 2021, indicating an improvement in the efficiency of its working capital management. However, this ratio dropped significantly to 6.66 in June 2022 and further to 6.93 in September 2022, suggesting potential issues in effectively utilizing its working capital.
There was a notable spike in the working capital turnover to 56.53 in June 2023, which could signify a more efficient utilization of working capital during that period. Subsequently, the ratio decreased to 7.60 in June 2024. Overall, Lennox International Inc's working capital turnover has been somewhat volatile, indicating fluctuations in the company's ability to convert working capital into revenue. Further analysis of the underlying reasons for these fluctuations would be necessary to fully understand the company's working capital management performance.
Peer comparison
Dec 31, 2024