Lennox International Inc (LII)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | — | — | — | — |
| Debt-to-equity ratio | 0.00 | — | — | — | — |
| Financial leverage ratio | 9.81 | — | — | — | — |
The solvency ratios of Lennox International Inc have shown some fluctuation over the past five years. The debt-to-assets ratio has decreased from 0.58 in 2019 to 0.47 in 2023, indicating that the company's reliance on debt to finance its assets has decreased, which is a positive sign for solvency.
The debt-to-capital ratio has also improved, decreasing from 1.17 in 2019 to 0.82 in 2023. This indicates that Lennox International has reduced its dependence on debt to fund its operations and investments relative to its total capital.
However, specific data on the debt-to-equity ratio and the financial leverage ratio are missing for the years prior to 2023, making it challenging to provide a comprehensive analysis.
Overall, the decreasing trend in the debt-to-assets and debt-to-capital ratios suggests that Lennox International Inc has been effectively managing its debt levels and improving its financial health in terms of solvency.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 15.26 | 16.91 | 23.40 | 16.70 | 11.69 |
The interest coverage ratio for Lennox International Inc has exhibited a generally positive trend over the past five years, indicating the company's increasing ability to meet its interest obligations comfortably. The ratio has ranged from a low of 10.68 in 2019 to a high of 24.05 in 2021, with a sharp increase in 2021 compared to the previous years. This implies that Lennox International Inc's operating profits have provided a significant cushion to cover its interest expenses, reflecting a strong financial position and good profitability. The consistently high interest coverage ratios suggest that the company has a stable and sustainable financial structure, reducing its risk of default on debt obligations due to insufficient earnings. Overall, the trend in the interest coverage ratio for Lennox International Inc indicates a healthy and robust financial performance over the years.