Lennox International Inc (LII)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | — | — | — | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $285,300K)
= 0.00
The debt-to-capital ratio for Lennox International Inc has shown fluctuation over the past five years. In 2023, the ratio decreased to 0.82 from 1.15 in 2022, indicating a lower level of leverage relative to the company's capital structure. This could imply that Lennox International Inc has reduced its reliance on debt financing or increased its equity position during the period.
Comparing the current ratio to previous years, it is evident that Lennox International Inc experienced a peak in leverage in 2021 with a ratio of 1.28, followed by a decline in 2022 and further reduction in 2023. The fluctuations in the debt-to-capital ratio suggest that the company may have been actively managing its capital structure and debt levels to optimize its financial position.
Overall, a decreasing trend in the debt-to-capital ratio could be seen as positive as it indicates a lower financial risk for the company, potentially leading to improved financial stability and flexibility in the long term. However, it is essential to consider additional factors and metrics in conjunction with the debt-to-capital ratio to gain a comprehensive understanding of Lennox International Inc's financial health and performance.
Peer comparison
Dec 31, 2023