Lennox International Inc (LII)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.30 | 79.29 | 91.47 | 96.17 | 80.04 | 81.33 | 79.26 | 80.54 | 62.04 | 57.37 | 54.60 | 67.65 | 61.83 | 57.54 | 70.27 | 82.80 | 72.81 | 78.85 | 85.10 | 79.65 |
| Days of sales outstanding (DSO) | days | 43.56 | 51.54 | 64.16 | 49.33 | 47.07 | 56.34 | 64.86 | 51.46 | 44.23 | 51.15 | 61.08 | 49.66 | 45.03 | 54.95 | 63.59 | 48.07 | 45.81 | 60.31 | 69.72 | 47.78 |
| Number of days of payables | days | 39.82 | 36.66 | 50.23 | 47.34 | 45.42 | 47.10 | 55.56 | 54.25 | 48.83 | 49.97 | 50.96 | 50.22 | 47.88 | 50.82 | 41.49 | 48.05 | 49.84 | 52.94 | 63.95 | 54.67 |
| Cash conversion cycle | days | 78.04 | 94.17 | 105.39 | 98.16 | 81.69 | 90.57 | 88.56 | 77.75 | 57.45 | 58.54 | 64.71 | 67.09 | 58.97 | 61.66 | 92.37 | 82.83 | 68.78 | 86.21 | 90.86 | 72.76 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.30 + 43.56 – 39.82
= 78.04
Lennox International Inc's cash conversion cycle has shown fluctuation over the past eight quarters. The cycle, which represents the time it takes for a company to convert its resources into cash flows, shows a general trend of improvement from Q2 2022 to Q1 2023, where it decreased from 105.39 days to 98.16 days.
However, the cycle increased in Q3 2023 to 94.17 days before reaching 78.04 days in Q4 2023, which is lower than the previous quarter. These fluctuations indicate that the company may be managing its cash resources more effectively in some periods but facing challenges in others.
Overall, Lennox International Inc's cash conversion cycle has not shown a consistent trend over the past eight quarters, suggesting potential variability in the company's operational efficiency and liquidity management.
Peer comparison
Dec 31, 2023