Lennox International Inc (LII)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,807,300 | 3,765,900 | 3,763,200 | 3,839,500 |
| Total current assets | US$ in thousands | 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 | 1,120,900 | 1,317,300 | 1,443,900 | 1,220,900 |
| Total current liabilities | US$ in thousands | 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 | 1,002,700 | 1,109,900 | 1,075,000 | 917,400 |
| Working capital turnover | 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 | 32.21 | 18.16 | 10.20 | 12.65 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,981,900K ÷ ($1,433,500K – $1,014,600K)
= 11.89
To analyze the working capital turnover of Lennox International Inc based on the provided data, we can observe fluctuations in the ratio across various quarters.
The working capital turnover for Q4 2023 is at a relatively healthy level of 11.89, indicating that the company is efficiently utilizing its working capital to generate sales revenue. This signifies that Lennox International Inc is effectively managing its current assets and liabilities to support its operations.
Comparing Q4 2023 to previous quarters, we see a significant increase from Q3 2023's ratio of 10.10. This improvement suggests that Lennox International Inc has been able to enhance its working capital efficiency in generating revenues over this period.
Looking back at Q2 2023, the working capital turnover spiked to an unusually high level of 56.53. This may have been influenced by specific factors such as a temporary increase in sales relative to the working capital investment. It is advisable for the company to evaluate the sustainability of such a high ratio and investigate any potential anomalies.
In contrast, Q1 2023 and the previous quarters in 2022 show relatively lower working capital turnover figures, indicating potential inefficiencies in utilizing working capital to drive sales during those periods.
Overall, the fluctuation in working capital turnover ratios for Lennox International Inc suggests varying levels of efficiency in managing its working capital across different quarters. It is essential for the company to maintain a balance in optimizing its working capital to support its operational needs and revenue generation consistently.
Peer comparison
Dec 31, 2023