Lennox International Inc (LII)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 590,100 | 497,100 | 464,000 | 356,300 | 408,700 |
| Total assets | US$ in thousands | 2,798,300 | 2,567,600 | 2,171,900 | 2,032,500 | 2,034,900 |
| ROA | 21.09% | 19.36% | 21.36% | 17.53% | 20.08% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $590,100K ÷ $2,798,300K
= 21.09%
Lennox International Inc's return on assets (ROA) has demonstrated a varying trend in the past five years. The company's ROA stood at 21.09% in 2023, showing an improvement compared to the previous year's ROA of 19.36% in 2022. This suggests that Lennox International has become more efficient in generating profits from its assets in the most recent year.
Looking further back, the ROA was 21.36% in 2021, indicating a slight decrease from the current year's level. In 2020, the ROA was 17.53%, which was lower than the subsequent two years but seems to have been a temporary dip. Moreover, in 2019, the ROA was 20.08%, reflecting a strong performance in utilizing its assets to generate returns.
Overall, Lennox International Inc's ROA has generally shown positive performance over the years, with occasional fluctuations. This suggests that the company has been effectively leveraging its assets to generate profits, although management should continue to monitor and optimize asset utilization to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023