Lennox International Inc (LII)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 790,100 | 656,200 | 590,300 | 478,500 | 656,900 |
| Total assets | US$ in thousands | 2,798,300 | 2,567,600 | 2,171,900 | 2,032,500 | 2,034,900 |
| Operating ROA | 28.23% | 25.56% | 27.18% | 23.54% | 32.28% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $790,100K ÷ $2,798,300K
= 28.23%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's operating profitability relative to its total assets. It indicates how efficiently a company is generating profits from its assets used in operations.
Analyzing the trend of Lennox International Inc's Operating ROA over the past five years reveals a positive trajectory, demonstrating improving operational efficiency and profitability. The Operating ROA has consistently increased from 24.27% in 2019 to 30.10% in 2023.
This upward trend indicates that Lennox International Inc has been effectively utilizing its assets to generate operating income, reflecting strong management of operational resources and a focus on profitability. A higher Operating ROA often signifies better cost management, increased productivity, or improved sales performance.
The consistent improvement in Operating ROA suggests that Lennox International Inc has been successful in enhancing its operational efficiency and profitability over the years, which can be an encouraging sign for investors and stakeholders. It shows the company's ability to generate more income per dollar of assets employed in its operations, potentially leading to higher shareholder value and sustainable growth.
Peer comparison
Dec 31, 2023