Lennox International Inc (LII)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,433,500 | 1,496,500 | 1,175,400 | 1,087,600 | 1,120,900 |
| Total current liabilities | US$ in thousands | 1,014,600 | 1,595,700 | 827,100 | 701,300 | 1,002,700 |
| Current ratio | 1.41 | 0.94 | 1.42 | 1.55 | 1.12 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,433,500K ÷ $1,014,600K
= 1.41
The current ratio of Lennox International Inc has fluctuated over the past five years, ranging from a low of 0.94 in 2022 to a high of 1.55 in 2020. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, reflecting the company's ability to cover its current liabilities with its current assets.
In 2023, Lennox International Inc's current ratio improved to 1.41 from the previous year's ratio of 0.94, suggesting an enhanced ability to meet its short-term obligations. However, it is important to note that a current ratio of 1.41 indicates that the company's current assets may not be significantly higher than its current liabilities, which may warrant further monitoring for potential liquidity challenges.
Overall, while the current ratio has shown some variability in recent years, the current ratio of 1.41 in 2023 indicates an improvement in Lennox International Inc's short-term liquidity position compared to the previous year. However, further analysis of the company's current assets and liabilities is necessary to fully assess its liquidity and financial health.
Peer comparison
Dec 31, 2023