Lennox International Inc (LII)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 789,200 | 654,500 | 585,100 | 472,700 | 555,300 |
| Long-term debt | US$ in thousands | — | 0 | 250,000 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 285,300 | -203,100 | -269,000 | -17,100 | -170,200 |
| Return on total capital | 276.62% | — | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $789,200K ÷ ($—K + $285,300K)
= 276.62%
Lennox International Inc's return on total capital has demonstrated a relatively stable and strong performance over the past five years. The company's return on total capital ranged from 50.13% to 62.07% during this period, with an average of 53.64%.
The higher returns on total capital indicate that Lennox International Inc has been effectively utilizing its capital resources to generate profits. The consistent performance suggests that the company has been successful in efficiently deploying its capital investments to generate income for its shareholders.
Overall, Lennox International Inc's strong return on total capital reflects positively on the company's operational efficiency and financial performance, indicating effective management of its capital structure and investment decisions.
Peer comparison
Dec 31, 2023