Lennox International Inc (LII)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,032,500 | 973,000 | 856,600 | 815,800 | 789,100 | 736,500 | 735,200 | 682,500 | 654,400 | 618,800 | 595,000 | 584,100 | 585,300 | 625,900 | 630,300 | 549,500 | 472,700 | 488,200 | 478,700 | 497,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | 0 | 400,000 | 400,000 | 279,000 | 250,000 | — | — | — | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 850,200 | 754,000 | 577,400 | 368,800 | 285,300 | 159,500 | 62,600 | -125,900 | -203,100 | -305,200 | -401,300 | -410,200 | -269,000 | -334,800 | -213,300 | -160,700 | -17,100 | -115,700 | -228,900 | -318,300 |
| Return on total capital | 121.44% | 129.05% | 148.35% | 221.20% | 276.59% | 461.76% | 1,174.44% | — | — | 652.74% | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,032,500K ÷ ($—K + $850,200K)
= 121.44%
The return on total capital for Lennox International Inc, as reflected in the data provided, shows a fluctuating trend over the quarters analyzed. The return on total capital was not available for the quarters of March 2020 to March 2023, indicating potentially missing or incomplete data during that period.
Starting from June 2023, the return on total capital experienced a significant increase, reaching 1,174.44% by the end of that quarter. This sharp rise could signify an improvement in the company's ability to generate profits relative to the total capital employed.
Subsequently, the return on total capital decreased in the following quarters but remained at relatively high levels. By December 2024, the return on total capital stood at 121.44%, indicating that Lennox International Inc was still generating a substantial return on its capital investments but at a lower rate compared to the peak in June 2023.
Overall, the return on total capital for Lennox International Inc demonstrates variability over the analyzed period, with periods of significant growth followed by some moderation. This trend suggests fluctuations in the company's profitability and efficiency in utilizing its total capital resources. Monitoring the return on total capital will be crucial for assessing the company's financial performance and capital allocation strategies in the future.
Peer comparison
Dec 31, 2024