Lennox International Inc (LII)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.17% | 31.07% | 27.23% | 28.34% | 28.62% |
| Operating profit margin | 19.37% | 15.86% | 13.91% | 14.07% | 13.17% |
| Pretax margin | 18.61% | 14.80% | 13.05% | 13.35% | 12.23% |
| Net profit margin | 15.11% | 11.84% | 10.54% | 11.06% | 9.80% |
Lennox International Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has remained relatively stable, ranging from 27.23% in 2022 to 33.17% in 2024. This indicates that Lennox has been effectively managing its cost of goods sold and generating a healthy gross profit from its sales.
The operating profit margin has shown an increasing trend, from 13.17% in 2020 to 19.37% in 2024. This suggests that Lennox has been able to control its operating expenses while increasing its operational efficiency, resulting in higher operating profits.
Moreover, the pretax margin has also improved consistently, from 12.23% in 2020 to 18.61% in 2024. This indicates that Lennox has been successful in managing its pre-tax income relative to its total revenue.
The most significant improvement can be observed in the net profit margin, which has increased from 9.80% in 2020 to 15.11% in 2024. This signifies that Lennox has been able to enhance its bottom line profitability by effectively managing its taxes, interest expenses, and other non-operating costs.
Overall, Lennox International Inc's profitability ratios reflect a strong operational performance and efficient management of costs, leading to increased profitability over the past five years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.81% | 28.23% | 25.56% | 27.18% | 23.54% |
| Return on assets (ROA) | 23.24% | 21.09% | 19.36% | 21.36% | 17.53% |
| Return on total capital | 121.44% | 276.62% | — | — | — |
| Return on equity (ROE) | 94.91% | 206.83% | — | — | — |
For Lennox International Inc, the profitability ratios show a generally positive trend over the years.
- Operating Return on Assets (Operating ROA): This ratio measures the efficiency of the company's operations in generating profit from its assets. Lennox International's Operating ROA has steadily increased from 23.54% in 2020 to 29.81% in 2024, indicating a consistent improvement in operational efficiency.
- Return on Assets (ROA): This ratio evaluates how effectively the company is utilizing its assets to generate profit. Lennox International's ROA has also shown an upward trend, rising from 17.53% in 2020 to 23.24% in 2024, reflecting increased profitability relative to its total assets.
- Return on Total Capital: This ratio was not available for analysis in the earlier years, but in 2023 and 2024, Lennox International demonstrated significant returns on its total capital of 276.62% and 121.44%, respectively, showcasing strong capital utilization and profitability.
- Return on Equity (ROE): The Return on Equity ratio assesses how well the company is generating returns for its shareholders' investments. Lennox International's ROE was not provided for the earlier years but showed remarkable figures of 206.83% in 2023 and 94.91% in 2024, indicating efficient management of shareholder equity to create value.
Overall, Lennox International Inc has exhibited a positive trajectory in its profitability performance, reflecting improved operational efficiency, asset utilization, capital management, and value creation for its shareholders.