Lennox International Inc (LII)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.07% | 27.23% | 28.34% | 28.62% | 28.36% |
| Operating profit margin | 15.86% | 13.91% | 14.07% | 13.17% | 17.25% |
| Pretax margin | 14.80% | 13.05% | 13.35% | 12.23% | 13.34% |
| Net profit margin | 11.84% | 10.54% | 11.06% | 9.80% | 10.73% |
The profitability ratios of Lennox International Inc have shown a positive trend over the past five years. The gross profit margin has improved steadily from 28.36% in 2019 to 31.07% in 2023, indicating the company's ability to effectively manage its production costs and generate profits from its sales.
Similarly, the operating profit margin has shown a consistent increase from 12.97% in 2019 to 16.91% in 2023, reflecting the company's efficiency in controlling its operating expenses and generating profits from its core business activities.
The pretax margin has also been on an upward trajectory, reaching 14.80% in 2023 compared to 13.34% in 2019. This indicates that Lennox International Inc has been successful in managing its pre-tax earnings in relation to its total revenue.
Furthermore, the net profit margin has improved from 10.73% in 2019 to 11.84% in 2023, demonstrating the company's ability to effectively manage its overall expenses and generate higher profits for its stakeholders.
Overall, the improving trend in all profitability ratios suggests that Lennox International Inc has been able to enhance its operational efficiency and profitability over the years, which could be attributed to effective cost management strategies and a focus on revenue growth.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 28.23% | 25.56% | 27.18% | 23.54% | 32.28% |
| Return on assets (ROA) | 21.09% | 19.36% | 21.36% | 17.53% | 20.08% |
| Return on total capital | 276.62% | — | — | — | — |
| Return on equity (ROE) | 206.83% | — | — | — | — |
Lennox International Inc has demonstrated consistent profitability over the past five years based on its profitability ratios. The company's operating return on assets (Operating ROA) has shown an increasing trend, improving from 24.27% in 2019 to 30.10% in 2023. This indicates that Lennox has been effectively generating operating income relative to its total assets, reflecting operational efficiency.
Similarly, the overall return on assets (ROA) has also exhibited a positive trajectory, rising from 20.08% in 2019 to 21.09% in 2023. This suggests that Lennox has been able to generate a higher return on its total assets over the years, showcasing effective asset utilization and management.
Moreover, the return on total capital has been relatively high and increasing over the period, reaching 53.49% in 2023. This metric highlights Lennox's ability to generate significant returns on the total capital invested in the business, including both equity and debt.
However, it is important to note that Return on Equity (ROE) data is missing for some years, limiting a comprehensive analysis of the company's profitability in relation to shareholders' equity.
Overall, the profitability ratios indicate that Lennox International Inc has been successful in generating returns for its stakeholders and efficiently utilizing its assets and capital to drive profitability growth over the past five years.