Lennox International Inc (LII)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | 4.22 | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $850,200K)
= 0.00
The debt-to-capital ratio of Lennox International Inc provides insights into the company's financial leverage and capital structure. The ratio is calculated by dividing total debt by the sum of total debt and total capital (equity and debt).
From the data provided, it can be observed that the debt-to-capital ratio was not available (indicated as "—") for the periods up to September 30, 2022. Starting from September 30, 2022, the ratio was reported at 4.22, which indicates that a significant portion of Lennox International Inc's capital structure was funded by debt at that time.
However, from June 30, 2023, the debt-to-capital ratio decreased to 0.00 and remained at 0.00 for all subsequent periods up to December 31, 2024. A debt-to-capital ratio of 0.00 suggests that the company had no debt in its capital structure, implying that the company might have paid off its debt entirely by that time. This could indicate lower financial risk and greater financial stability for Lennox International Inc.
It's important to note that a lower debt-to-capital ratio generally signifies lower financial risk and greater financial stability, as the company relies less on debt to finance its operations. On the other hand, a higher ratio indicates higher leverage and potential financial risks associated with a heavier debt burden.
In conclusion, Lennox International Inc's decreasing debt-to-capital ratio suggests a shift towards a lower debt reliance and potentially improved financial health in the latter period covered by the data.
Peer comparison
Dec 31, 2024