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Lennar Operating Income

: $6,078 Mil (TTM As of Feb. 2022)
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Lennar's Operating Income for the three months ended in Feb. 2022 was $1,093 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2022 was $6,078 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lennar's Operating Income for the three months ended in Feb. 2022 was $1,093 Mil. Lennar's Revenue for the three months ended in Feb. 2022 was $6,204 Mil. Therefore, Lennar's Operating Margin % for the quarter that ended in Feb. 2022 was 17.62%.

Good Sign:

Lennar Corp operating margin is expanding. Margin expansion is usually a good sign.

Lennar's 5-Year average Growth Rate for Operating Margin % was 10.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lennar's annualized ROC % for the quarter that ended in Feb. 2022 was 11.22%. Lennar's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2022 was 21.92%.


Lennar Operating Income Historical Data

The historical data trend for Lennar's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lennar Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,339.00 1,990.25 2,481.11 3,140.66 5,138.26

Lennar Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,157.92 1,342.65 1,774.19 1,092.90 1,868.72

Lennar Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Feb. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,078 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lennar  (NYSE:LEN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Lennar's annualized ROC % for the quarter that ended in Feb. 2022 is calculated as:

ROC % (Q: Feb. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2021 ) + Invested Capital (Q: Feb. 2022 ))/ count )
=4371.612 * ( 1 - 24.74% )/( (28923.133 + 29707.519)/ 2 )
=3290.0751912/29315.326
=11.22 %

where

Invested Capital(Q: Nov. 2021 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=33207.778 - 1321.247 - ( 2963.398 - max(0, 1321.247 - 25144.515+2963.398))
=28923.133

Invested Capital(Q: Feb. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=32635.252 - 1321.148 - ( 1606.585 - max(0, 1321.148 - 24777.699+1606.585))
=29707.519

Note: The Operating Income data used here is four times the quarterly (Feb. 2022) data.

2. Joel Greenblatt's definition of Return on Capital:

Lennar's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2021  Q: Feb. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4371.612/( ( (339.906 + max(18933.663, 0)) + (0 + max(20617.195, 0)) )/ 2 )
=4371.612/( ( 19273.569 + 20617.195 )/ 2 )
=4371.612/19945.382
=21.92 %

where Working Capital is:

Working Capital(Q: Nov. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1051.574 + 19169.397 + 33.938999999998) - (1321.247 + 0 + 0)
=18933.663

Working Capital(Q: Feb. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(916.385 + 20988.209 + 33.749000000003) - (1321.148 + 0 + 0)
=20617.195

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2022) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Lennar's Operating Margin % for the quarter that ended in Feb. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Feb. 2022 )/Revenue (Q: Feb. 2022 )
=1092.903/6203.516
=17.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Lennar Operating Income Related Terms

Thank you for viewing the detailed overview of Lennar's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Lennar Business Description

Lennar logo
Industry
Address
700 Northwest 107th Avenue, Miami, FL, USA, 33172
After merging with CalAtlantic in February 2018, Lennar has become the largest public homebuilder (by revenue) in the United States. The company's homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar's financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily construction and has invested in numerous housing-related technology startups.
Executives
Bessette Diane J officer: VP/CFO/Treasurer LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Collins David M officer: Controller LENNAR CORPORATION 700 NW 107 AVENUE STE 400 MIAMI FL 33172
Jaffe Jonathan M director, officer: President LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Mccall Jeffrey Joseph officer: Executive Vice President 26 TECHNOLOGY DRIVE IRVINE CA 92618
Stowell Scott D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STOWELL SCOTT D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Gerard Steven L director P.O. BOX 554 MILWAUKEE WI 53201-0554
Bolotin Irving director LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Sustana Mark officer: VP/General Counsel/Secretary LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Beckwitt Richard director, officer: Chief Executive Officer LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Olivera Armando J director C/O FLUOR CORPORATION 6700 LAS COLINAS BLVD IRVING TX 75039
Gilliam Theron I director GMS INC. 100 CRESCENT CENTRE PARKWAY, SUITE 800 TUCKER 2Q 30084
Mcclure Teri P director 55 GLENLAKE PARKWAY NE ATLANTA GA 30328
Sonnenfeld Jeffrey director 14 WALL ST 13TH FL NEW YORK NY 10005
Hudson Sherrill W director 201 SOUTH BISCAYNE BOULEVARD 34TH FLOOR, MIAMI CENTER MIAMI FL 33131
Lapidus Sidney director 466 LEXINGTON AVENUE FLOOR NEW YORK NY 10017

Lennar Headlines

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