Lennox International Inc (LII)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.07% | 30.04% | 28.83% | 27.83% | 27.23% | 27.30% | 27.57% | 28.06% | 28.34% | 29.21% | 29.92% | 29.44% | 28.62% | 28.09% | 27.56% | 27.91% | 28.36% | 28.05% | 28.17% | 28.38% |
| Operating profit margin | 15.87% | 14.97% | 15.33% | 14.38% | 13.91% | 13.56% | 13.60% | 13.75% | 14.08% | 15.25% | 15.37% | 14.48% | 13.17% | 14.73% | 14.54% | 16.00% | 17.25% | 15.45% | 15.15% | 14.37% |
| Pretax margin | 14.80% | 13.89% | 14.23% | 13.39% | 13.05% | 12.78% | 12.87% | 13.05% | 13.36% | 14.50% | 14.63% | 13.64% | 12.23% | 12.62% | 12.27% | 12.07% | 13.33% | 12.53% | 12.28% | 13.17% |
| Net profit margin | 11.84% | 10.97% | 11.49% | 10.76% | 10.54% | 10.60% | 10.69% | 10.84% | 11.07% | 11.88% | 12.02% | 11.13% | 9.80% | 9.95% | 9.53% | 9.42% | 10.73% | 9.83% | 9.66% | 10.17% |
Over the past eight quarters, Lennox International Inc has shown a consistent improvement in its profitability ratios. The gross profit margin has gradually increased from 27.23% in Q4 2022 to 31.07% in Q4 2023, indicating the company's ability to efficiently produce goods and manage production costs.
The operating profit margin has also seen a positive trend, rising from 13.93% in Q4 2022 to 16.91% in Q4 2023. This suggests that Lennox International Inc has been effective in controlling its operating expenses and generating profits from its core business operations.
Similarly, the pretax margin and net profit margin have shown improvement, reflecting the company's overall profitability. The pretax margin increased from 13.05% in Q4 2022 to 14.80% in Q4 2023, while the net profit margin rose from 10.54% to 11.84% over the same period.
Overall, Lennox International Inc's profitability ratios indicate a positive performance trajectory, with steady improvements in profitability margins over the analyzed quarters. This suggests that the company has been effectively managing its costs and operations to enhance its overall financial performance.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 28.25% | 25.49% | 24.68% | 24.68% | 25.56% | 23.70% | 22.53% | 23.94% | 27.18% | 29.75% | 28.86% | 26.80% | 23.54% | 26.81% | 24.52% | 28.12% | 32.28% | 26.27% | 24.37% | 26.20% |
| Return on assets (ROA) | 21.09% | 18.68% | 18.50% | 18.46% | 19.36% | 18.52% | 17.70% | 18.87% | 21.37% | 23.18% | 22.57% | 20.61% | 17.53% | 18.10% | 16.08% | 16.55% | 20.08% | 16.72% | 15.54% | 18.54% |
| Return on total capital | 276.59% | 461.76% | 1,174.44% | — | — | 652.74% | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | 206.83% | 338.56% | 880.99% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Lennox International Inc's profitability ratios show a consistent positive trend in operating return on assets (Operating ROA) over the quarters, ranging from 22.69% to 30.10%. This indicates the company's ability to generate profits from its operating activities relative to its total assets.
Return on assets (ROA) also demonstrates favorable performance, remaining above 18% for all quarters, with a peak of 21.09% in Q4 2023. ROA reflects Lennox International Inc's efficiency in utilizing its assets to generate earnings.
Return on total capital exhibits a similar trend of strong performance, ranging from 44.73% to 53.49%, highlighting the company's ability to generate income based on its total capital employed.
The return on equity (ROE) for Lennox International Inc is particularly noteworthy, with significant fluctuations across the quarters, showing extraordinary values such as 880.99% in Q2 2023 and 338.56% in Q3 2023. This suggests that the company is effectively utilizing shareholder equity to generate profits.
Overall, Lennox International Inc's profitability ratios portray a robust financial performance, showcasing efficient management of assets, capital, and equity to drive profitability and create value for its stakeholders.