Lennox International Inc (LII)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,884,200 | 1,433,500 | 1,496,500 | 1,175,400 | 1,087,600 |
| Total current liabilities | US$ in thousands | 1,313,300 | 1,014,600 | 1,595,700 | 827,100 | 701,300 |
| Current ratio | 1.43 | 1.41 | 0.94 | 1.42 | 1.55 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,884,200K ÷ $1,313,300K
= 1.43
Lennox International Inc's current ratio has shown some fluctuations over the past five years. The current ratio decreased from 1.55 in December 2020 to 0.94 in December 2022, indicating potential liquidity concerns during that period. However, there was a recovery in the following years, with the ratio improving to 1.42 in December 2021, 1.41 in December 2023, and 1.43 in December 2024.
A current ratio above 1 indicates that Lennox International Inc has sufficient current assets to cover its current liabilities. The ratios above 1.4 in the recent years suggest an improved liquidity position, which is generally favorable for the company in meeting its short-term obligations.
It is important for stakeholders to closely monitor the current ratio to ensure that Lennox International Inc maintains a healthy balance between its current assets and liabilities for continued financial stability.
Peer comparison
Dec 31, 2024