Lennox International Inc (LII)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 415,100 | 60,700 | 52,600 | 31,000 | 123,900 |
| Short-term investments | US$ in thousands | 7,200 | 8,400 | 8,500 | 5,500 | 5,100 |
| Total current liabilities | US$ in thousands | 1,313,300 | 1,014,600 | 1,595,700 | 827,100 | 701,300 |
| Cash ratio | 0.32 | 0.07 | 0.04 | 0.04 | 0.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($415,100K
+ $7,200K)
÷ $1,313,300K
= 0.32
The cash ratio of Lennox International Inc has fluctuated over the past five years, declining from 0.18 as of December 31, 2020, to 0.04 as of both December 31, 2021 and December 31, 2022. This indicates that the company had a relatively low level of cash and cash equivalents compared to its current liabilities during these periods.
However, there was a slight improvement in the ratio as of December 31, 2023, where it increased to 0.07, reflecting a slightly better liquidity position. The most significant improvement occurred as of December 31, 2024, with the cash ratio rising sharply to 0.32. This considerable increase suggests that Lennox International Inc had a higher level of cash reserves relative to its current liabilities at the end of 2024, indicating stronger liquidity and potential financial stability.
Overall, the trend in Lennox International Inc's cash ratio over the five-year period reflects fluctuations in the company's liquidity position, with notable improvements in the most recent year.
Peer comparison
Dec 31, 2024