Lennox International Inc (LII)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.15 | 0.15 | 0.11 | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | 4.22 | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 4.08 | 4.39 | 5.58 | 8.09 | 9.81 | 18.12 | 47.62 | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the data provided, Lennox International Inc's solvency ratios show the following trends:
1. Debt-to-assets ratio:
- The debt-to-assets ratio was consistently at 0.00% from March 2020 to December 2022, indicating a very low level of debt relative to the company's total assets.
- However, there was a slight increase in the ratio to 0.15% by June 2022 and it remained at that level until September 2022 before dropping back to 0.00% by December 2022 and for the following years.
2. Debt-to-capital ratio:
- The debt-to-capital ratio was not available (marked as '—') for most of the period, except for September 2022 onwards where it was calculated at 4.22%.
- From June 2023 to December 2024, this ratio decreased steadily from 0.00% to 0.00%, indicating a low level of debt relative to the company's capital.
3. Debt-to-equity ratio:
- The debt-to-equity ratio was not available (marked as '—') for the entire period until June 2023.
- From June 2023 to December 2024, the ratio decreased steadily from 0.00% to 0.00%, suggesting a low level of debt relative to the company's equity.
4. Financial leverage ratio:
- The financial leverage ratio started at a very high level of 47.62 in June 2023 and decreased significantly to 4.08 by December 2024.
- This decreasing trend indicates that Lennox International Inc has been reducing its leverage and reliance on debt to finance its operations over the period.
Overall, Lennox International Inc has maintained a low level of debt in relation to assets, capital, and equity, with decreasing financial leverage, reflecting a cautious approach towards managing its solvency and financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 26.68 | 21.87 | 18.30 | 16.55 | 15.26 | 13.90 | 14.06 | 14.84 | 16.95 | 19.22 | 21.10 | 22.55 | 23.32 | 25.04 | 25.21 | 21.55 | 16.76 | 14.75 | 12.24 | 10.97 |
Lennox International Inc's interest coverage ratio has gradually improved over the past few years, indicating the company's ability to meet its interest obligations comfortably.
The interest coverage ratio increased steadily from March 2020 to June 2021, reaching its peak at 25.21 in June 2021. This signifies that Lennox International Inc generated more than enough operating income to cover its interest expenses during this period.
However, from September 2021 onwards, there was a slight decline in the interest coverage ratio, though it remained relatively stable above 15. This suggests that the company's ability to cover interest expenses slightly weakened but still remained at a healthy level.
By the end of December 2024, the interest coverage ratio had improved to 26.68, showing that Lennox International Inc's profitability and cash flows were sufficient to comfortably cover its interest payments.
Overall, Lennox International Inc has maintained a strong interest coverage position, indicating financial stability and the ability to meet its debt obligations without significant financial strain.