Lennox International Inc (LII)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,798,300 | 2,567,600 | 2,171,900 | 2,032,500 | 2,034,900 |
| Total stockholders’ equity | US$ in thousands | 285,300 | -203,100 | -269,000 | -17,100 | -170,200 |
| Financial leverage ratio | 9.81 | — | — | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,798,300K ÷ $285,300K
= 9.81
The financial leverage ratio for Lennox International Inc as of December 31, 2023, is 9.81. This ratio indicates that the company's level of debt relative to its equity is high, suggesting that Lennox International relies heavily on debt to finance its operations and growth. In comparison to the previous years' data, it is evident that the company's financial leverage has increased significantly. It is essential for stakeholders to monitor this ratio closely as high levels of financial leverage can increase the company's financial risk and impact its ability to meet its debt obligations in the long run.
Peer comparison
Dec 31, 2023