Lennox International Inc (LII)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 661,100 | 594,600 | 608,500 | 508,300 | 448,300 |
| Total current liabilities | US$ in thousands | 1,313,300 | 1,014,600 | 1,595,700 | 827,100 | 701,300 |
| Quick ratio | 0.82 | 0.65 | 0.42 | 0.66 | 0.82 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($415,100K
+ $7,200K
+ $661,100K)
÷ $1,313,300K
= 0.82
The quick ratio of Lennox International Inc has shown some fluctuations over the years. Starting at 0.82 on December 31, 2020, it decreased to 0.66 by December 31, 2021, indicating a slight decline in the company's ability to meet its short-term obligations with its most liquid assets. The ratio further dropped to 0.42 by December 31, 2022, raising concerns about the company's liquidity position.
However, there was a positive trend in the quick ratio in the following years. By December 31, 2023, the quick ratio improved to 0.65, suggesting a better ability to cover short-term liabilities with current assets. Subsequently, by December 31, 2024, the quick ratio returned to its initial level of 0.82, which may indicate a recovery in the company's liquidity situation.
Overall, despite the fluctuations observed, Lennox International Inc's quick ratio generally reflects some variability in its ability to meet short-term obligations with its quick assets. It would be important for stakeholders to monitor this ratio closely to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2024