Lennox International Inc (LII)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — | 4.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 9.81 | 18.12 | 47.62 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Lennox International Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. Analyzing the data from the table, we can observe the following trends:
1. Debt-to-assets ratio: The ratio has fluctuated over the quarters, ranging from 0.47 to 0.66. A lower ratio indicates that the company has a lower proportion of its assets financed by debt, which suggests a better solvency position.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also varied over the quarters, ranging from 0.82 to 1.34. This ratio measures the proportion of the company's capital that is funded by debt, with a higher ratio indicating a higher financial risk.
3. Debt-to-equity ratio: The data provided for this ratio shows a significant increase from 4.57 to 25.22 over the quarters. A higher debt-to-equity ratio indicates that the company is relying more heavily on debt financing to fund its operations, which can increase financial risk.
4. Financial leverage ratio: The financial leverage ratio has also increased significantly, from 9.81 to 47.62, indicating that the company's reliance on debt has intensified. A high financial leverage ratio implies higher financial risk and potential volatility in earnings.
In summary, based on the solvency ratios provided, Lennox International Inc has experienced fluctuations in its leverage ratios, particularly evident in the increasing debt-to-equity and financial leverage ratios. This suggests a growing reliance on debt financing, which could potentially impact the company's financial stability and ability to meet its long-term obligations. Monitoring these ratios over time will be crucial to assess the company's evolving solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 11.69 | 11.19 | 11.48 | 13.39 |
The interest coverage ratio for Lennox International Inc has been consistently decreasing over the past eight quarters, from 23.24 in Q1 2022 to 16.46 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. However, it is important to note that Lennox International Inc still maintains a healthy interest coverage ratio, above 1, which suggests that the company is comfortably able to meet its interest obligations. Nonetheless, management should continue monitoring this ratio to ensure the company's financial health and ability to service its debt obligations.