The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Lennar's current ratio for the quarter that ended in May. 2022 was 17.03.
Lennar has a current ratio of 17.03. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Lennar's Current Ratio or its related term are showing as below:
LEN'
s Current Ratio Range Over the Past 10 Years
Min: 1.63 Med: 6.45 Max: 35.19
Current: 17.03
During the past 13 years, Lennar's highest Current Ratio was 35.19. The lowest was 1.63. And the median was 6.45.
LEN's Current Ratio is ranked better than 97.22% of 108
companies
in the Homebuilding & Construction industry
Industry Median: 2.61
vs LEN: 17.03
Lennar Current Ratio Historical Data
The historical data trend for Lennar's Current Ratio 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
Current Ratio
20.28
18.44
20.80
21.85
19.03
Lennar Quarterly Data
Aug17
Nov17
Feb18
May18
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Current Ratio
20.10
19.91
19.03
18.75
17.03
Competitive Comparison
For the Residential Construction subindustry, Lennar's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio Distribution
For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Current Ratio distribution charts can be found below:
* The bar in red indicates where Lennar's Current Ratio falls into.
Lennar Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Lennar's Current Ratio for the fiscal year that ended in Nov. 2021
* 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) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Lennar Current Ratio Related Terms
Thank you for viewing the detailed overview of Lennar's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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