GURUFOCUS.COM » STOCK LIST » USA » NYSE » Lennar Corp (NYSE:LEN) » Definitions » Financial Strength
Switch to:

Lennar Financial Strength

: 6 (As of May. 2022)
View and export this data going back to 1972. Start your Free Trial

Lennar has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Lennar's interest coverage with the available data. Lennar's debt to revenue ratio for the quarter that ended in May. 2022 was 0.18. As of today, Lennar's Altman Z-Score is 4.17.


Competitive Comparison

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

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

* The bar in red indicates where Lennar's Financial Strength falls into.



Lennar Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Lennar's Interest Expense for the months ended in May. 2022 was $0 Mil. Its Operating Income for the months ended in May. 2022 was $1,869 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2022 was $5,984 Mil.

Lennar's Interest Coverage for the quarter that ended in May. 2022 is

GuruFocus does not calculate Lennar's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Lennar's Debt to Revenue Ratio for the quarter that ended in May. 2022 is

Debt to Revenue Ratio=Total Debt (Q: May. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 5984.387) / 33434.784
=0.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Lennar has a Z-score of 4.17, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.17 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Lennar has the Financial Strength Rank of 6.


Lennar Financial Strength Related Terms

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


Lennar Business Description

Lennar logo
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
Banse Amy director 345 PARK AVENUE SAN JOSE CA 95110
Mccall Jeffrey Joseph officer: Senior Vice President 26 TECHNOLOGY DRIVE IRVINE CA 92618
Stowell Scott D director
Olivera Armando J director C/O FLUOR CORPORATION 6700 LAS COLINAS BLVD IRVING TX 75039
Mcclure Teri P director 55 GLENLAKE PARKWAY NE ATLANTA GA 30328
Gilliam Theron I director GMS INC. 100 CRESCENT CENTRE PARKWAY, SUITE 800 TUCKER GA 30084
Collins David M officer: Controller LENNAR CORPORATION 700 NW 107 AVENUE STE 400 MIAMI FL 33172
Hudson Sherrill W director 201 SOUTH BISCAYNE BOULEVARD 34TH FLOOR, MIAMI CENTER MIAMI FL 33131
Somma Lawrence C officer: Treasurer C/O LYONDELLBASELL INDUSTRIES N.V. DELFTSEPLEIN 27E ROTTERDAM P7 3013AA
Beckwitt Richard officer: Executive Vice President LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Mp Alpha Holdings Lllp Investments Trust 10 percent owner 700 N.W. 107TH AVENUE MIAMI FL 33172
Mp Alpha Holdings Lllp 10 percent owner 700 NORTHWEST 107TH AVENUE MIAMI FL 33172
Sonnenfeld Jeffrey director 14 WALL ST 13TH FL NEW YORK NY 10005
Sustana Mark officer: General Counsel and Secretary LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Bolotin Irving director LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172

Lennar Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)