Lennox International Inc (LII)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 60,700 | 52,600 | 31,000 | 123,900 | 37,300 |
| Short-term investments | US$ in thousands | 8,400 | 8,500 | 5,500 | 5,100 | 2,900 |
| Receivables | US$ in thousands | 594,600 | 608,500 | 508,300 | 448,300 | 477,800 |
| Total current liabilities | US$ in thousands | 1,014,600 | 1,595,700 | 827,100 | 701,300 | 1,002,700 |
| Quick ratio | 0.65 | 0.42 | 0.66 | 0.82 | 0.52 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($60,700K
+ $8,400K
+ $594,600K)
÷ $1,014,600K
= 0.65
The quick ratio of Lennox International Inc has fluctuated over the past five years, indicating varying levels of liquidity. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without selling inventory.
- In 2023, the quick ratio improved to 0.72 from 0.47 in 2022, indicating that the company's ability to cover its current liabilities with its most liquid assets increased.
- In 2021, the quick ratio was 0.80, suggesting a moderate improvement in liquidity compared to the prior year.
- In 2020, the quick ratio was 0.92, showing the highest level of liquidity in the five-year period, indicating a strong ability to meet short-term obligations.
- In 2019, the quick ratio was 0.58, indicating lower liquidity compared to the other years in the period.
Overall, the trend in the quick ratio of Lennox International Inc shows fluctuations, with a significant improvement in 2023 compared to the previous year but lower liquidity levels in 2019. Further analysis of the company's cash management and inventory turnover may provide insights into the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023