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LEN (Lennar) Return-on-Tangible-Equity : 9.59% (As of Feb. 2025)


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What is Lennar Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lennar's annualized net income for the quarter that ended in Feb. 2025 was $2,078 Mil. Lennar's average shareholder tangible equity for the quarter that ended in Feb. 2025 was $21,667 Mil. Therefore, Lennar's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2025 was 9.59%.

The historical rank and industry rank for Lennar's Return-on-Tangible-Equity or its related term are showing as below:

LEN' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.06   Med: 17.41   Max: 28.09
Current: 16.46

During the past 13 years, Lennar's highest Return-on-Tangible-Equity was 28.09%. The lowest was 11.06%. And the median was 17.41%.

LEN's Return-on-Tangible-Equity is ranked better than
67.01% of 97 companies
in the Homebuilding & Construction industry
Industry Median: 11.16 vs LEN: 16.46

Lennar Return-on-Tangible-Equity Historical Data

The historical data trend for Lennar's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

Lennar Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.50 28.09 24.51 18.14 16.67

Lennar Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Return-on-Tangible-Equity Get a 7-Day Free Trial 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 12.52 16.50 19.78 18.26 9.59

Competitive Comparison of Lennar's Return-on-Tangible-Equity

For the Residential Construction subindustry, Lennar's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Lennar's Return-on-Tangible-Equity falls into.


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Lennar Return-on-Tangible-Equity Calculation

Lennar's annualized Return-on-Tangible-Equity for the fiscal year that ended in Nov. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Nov. 2024 )  (A: Nov. 2023 )(A: Nov. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Nov. 2024 )  (A: Nov. 2023 )(A: Nov. 2024 )
=3932.533/( (22948.606+24238.077 )/ 2 )
=3932.533/23593.3415
=16.67 %

Lennar's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2025 )  (Q: Nov. 2024 )(Q: Feb. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2025 )  (Q: Nov. 2024 )(Q: Feb. 2025 )
=2078.104/( (24238.077+19095.98)/ 2 )
=2078.104/21667.0285
=9.59 %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Feb. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Lennar  (NYSE:LEN) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


Lennar Return-on-Tangible-Equity Related Terms

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


Lennar Business Description

Address
5505 Waterford District Drive, Miami, FL, USA, 33126
Lennar is one of the largest public homebuilders in the United States. The company's homebuilding operations target first-time, move-up, active adult, and luxury 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 and single-family for-rent construction and has invested in numerous housing-related technology startups.
Executives
Amy Banse director 345 PARK AVENUE, SAN JOSE CA 95110
Diane J Bessette officer: VP/CFO/Treasurer LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172
Mark Sustana officer: VP/General Counsel/Secretary LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172
David M Collins officer: VP & Controller LENNAR CORPORATION, 700 NW 107 AVENUE STE 400, MIAMI FL 33172
Jeffrey Joseph Mccall officer: Executive Vice President 26 TECHNOLOGY DRIVE, IRVINE CA 92618
Dacona Smith director 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Serena Wolfe director ANNALY CAPITAL MANAGEMENT, INC., 1211 AVE. OF THE AMERICAS, NEW YORK NY 10036
Jonathan M Jaffe director, officer: Vice President LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172
Scott D Stowell director
Irving Bolotin director LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172
Steven L Gerard director P.O. BOX 554, MILWAUKEE WI 53201-0554
Armando J Olivera director C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Sherrill W Hudson director 201 SOUTH BISCAYNE BOULEVARD, 34TH FLOOR, MIAMI CENTER, MIAMI FL 33131
Jeffrey Sonnenfeld director 14 WALL ST 13TH FL, NEW YORK NY 10005
Theron I Gilliam director GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084