Lennox International Inc (LII)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,034,800 | 790,100 | 656,200 | 590,300 | 478,500 |
| Total assets | US$ in thousands | 3,471,800 | 2,798,300 | 2,567,600 | 2,171,900 | 2,032,500 |
| Operating ROA | 29.81% | 28.23% | 25.56% | 27.18% | 23.54% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,034,800K ÷ $3,471,800K
= 29.81%
Lennox International Inc's operating return on assets (Operating ROA) has shown a consistent upward trend over the past five years. Starting at 23.54% on December 31, 2020, it increased to 29.81% by December 31, 2024. This indicates that Lennox International Inc has been effectively utilizing its assets to generate operating income.
The steady improvement in operating ROA suggests that Lennox International Inc has been able to increase its operating income relative to its total assets over the years. This could be a result of efficient operations, improved asset management, or strategic business decisions.
Overall, the rising trend in operating ROA is a positive indicator of Lennox International Inc's operational efficiency and profitability, demonstrating the company's ability to generate income from its asset base.
Peer comparison
Dec 31, 2024