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Lennar ROA %

: 17.60% (As of Aug. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lennar's annualized Net Income for the quarter that ended in Aug. 2021 was $5,628 Mil. Lennar's average Total Assets over the quarter that ended in Aug. 2021 was $31,984 Mil. Therefore, Lennar's annualized ROA % for the quarter that ended in Aug. 2021 was 17.60%.

The historical rank and industry rank for Lennar's ROA % or its related term are showing as below:

NYSE:LEN' s ROA % Range Over the Past 10 Years
Min: 1.03   Med: 6   Max: 14.05
Current: 14.05

1.03
14.05

During the past 13 years, Lennar's highest ROA % was 14.05%. The lowest was 1.03%. And the median was 6.00%.

NYSE:LEN's ROA % is ranked higher than
88% of the 111 Companies
in the Homebuilding & Construction industry.

( Industry Median: 4.83 vs. NYSE:LEN: 14.05 )

Lennar ROA % Historical Data

The historical data trend for Lennar's ROA % 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
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.75 7.17 6.38 8.31 14.03

Lennar Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
ROA % 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 11.92 13.24 10.77 17.60 14.44

Competitive Comparison

For the Residential Construction subindustry, Lennar's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lennar ROA % Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's ROA % distribution charts can be found below:

* The bar in red indicates where Lennar's ROA % falls into.



Lennar ROA % Calculation

Lennar's annualized ROA % for the fiscal year that ended in Nov. 2020 is calculated as:

ROA %=Net Income (A: Nov. 2020 )/( (Total Assets (A: Nov. 2019 )+Total Assets (A: Nov. 2020 ))/ count )
=2465.036/( (29359.511+29935.177)/ 2 )
=2465.036/29647.344
=8.31 %

Lennar's annualized ROA % for the quarter that ended in Aug. 2021 is calculated as:

ROA %=Net Income (Q: Aug. 2021 )/( (Total Assets (Q: May. 2021 )+Total Assets (Q: Aug. 2021 ))/ count )
=5627.552/( (31223.227+32744.19)/ 2 )
=5627.552/31983.7085
=17.60 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Aug. 2021) net income data. ROA % is displayed in the 30-year financial page.


Lennar  (NYSE:LEN) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Aug. 2021 )
=Net Income/Total Assets
=5627.552/31983.7085
=(Net Income / Revenue)*(Revenue / Total Assets)
=(5627.552 / 27765.612)*(27765.612 / 31983.7085)
=Net Margin %*Asset Turnover
=20.27 %*0.8681
=17.60 %

Note: The Net Income data used here is four times the quarterly (Aug. 2021) net income data. The Revenue data used here is four times the quarterly (Aug. 2021) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Lennar ROA % Related Terms

Thank you for viewing the detailed overview of Lennar's ROA % 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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