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Lennar ROE %

: 27.65% (As of Aug. 2021)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Lennar's annualized net income attributable to common stockholders for the quarter that ended in Aug. 2021 was $5,561 Mil. Lennar's average Total Stockholders Equity over the quarter that ended in Aug. 2021 was $20,113 Mil. Therefore, Lennar's annualized ROE % for the quarter that ended in Aug. 2021 was 27.65%.

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

NYSE:LEN' s ROE % Range Over the Past 10 Years
Min: 3.43   Med: 14.14   Max: 22.41
Current: 22.41

3.43
22.41

During the past 13 years, Lennar's highest ROE % was 22.41%. The lowest was 3.43%. And the median was 14.14%.

NYSE:LEN's ROE % is ranked higher than
77% of the 105 Companies
in the Homebuilding & Construction industry.

( Industry Median: 13.03 vs. NYSE:LEN: 22.41 )

Lennar ROE % Historical Data

The historical data trend for Lennar's ROE % 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
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.78 14.97 12.01 14.36 22.83

Lennar Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
ROE % 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 19.86 21.45 17.06 27.65 22.97

Competitive Comparison

For the Residential Construction subindustry, Lennar's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

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



Lennar ROE % Calculation

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

ROE %=Net Income attributable to Common Stockholders (A: Nov. 2020 )/( (Total Stockholders Equity (A: Nov. 2019 )+Total Stockholders Equity (A: Nov. 2020 ))/ count )
=2436.647/( (15949.517+17994.856)/ 2 )
=2436.647/16972.1865
=14.36 %

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

ROE %=Net Income attributable to Common Stockholders (Q: Aug. 2021 )/( (Total Stockholders Equity (Q: May. 2021 )+Total Stockholders Equity (Q: Aug. 2021 ))/ count )
=5560.776/( (19576.108+20650.188)/ 2 )
=5560.776/20113.148
=27.65 %

* 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 ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Aug. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Lennar  (NYSE:LEN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Aug. 2021 )
=Net Income/Total Stockholders Equity
=5627.552/20113.148
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5627.552 / 27765.612)*(27765.612 / 31983.7085)*(31983.7085 / 20113.148)
=Net Margin %*Asset Turnover*Equity Multiplier
=20.27 %*0.8681*1.5902
=ROA %*Equity Multiplier
=17.6 %*1.5902
=27.98 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Aug. 2021 )
=Net Income/Total Stockholders Equity
=5627.552/20113.148
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (5627.552 / 7257.416) * (7257.416 / 5370.616) * (5370.616 / 27765.612) * (27765.612 / 31983.7085) * (31983.7085 / 20113.148)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7754 * 1.3513 * 19.34 % * 0.8681 * 1.5902
=27.98 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Aug. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Aug. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Lennar ROE % Related Terms

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