Lennox International Inc (LII)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 0 | 400,000 | 400,000 | 279,000 | 250,000 | — | — | — | 0 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | -170,200 | -277,300 | -217,500 | -204,800 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — | 4.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 been trending downwards over the past few quarters, indicating a decreasing reliance on debt to finance its operations relative to its total capital structure. The ratio decreased from 1.15 in Q4 2022 to 0.82 in Q4 2023. This suggests that the company has been able to reduce its debt levels or increase its equity capital base during this period.
A declining debt-to-capital ratio could signify improved financial stability and reduced financial risk for the company, as lower debt levels generally mean lower interest expenses and a lower risk of default. However, it is important to note that a very low debt-to-capital ratio may also indicate underutilization of debt as a cheaper source of financing compared to equity.
Overall, the decreasing trend in Lennox International Inc's debt-to-capital ratio indicates a positive financial development, but it is essential to assess this ratio in conjunction with other financial metrics and considering the company's specific industry and market conditions.
Peer comparison
Dec 31, 2023