GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Lennox International Inc (NYSE:LII) » Definitions » ROE %

LII (Lennox International) ROE % : 143.61% (As of Sep. 2024)


View and export this data going back to 1999. Start your Free Trial

What is Lennox International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lennox International's annualized net income for the quarter that ended in Sep. 2024 was $956 Mil. Lennox International's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $666 Mil. Therefore, Lennox International's annualized ROE % for the quarter that ended in Sep. 2024 was 143.61%.

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

LII' s ROE % Range Over the Past 10 Years
Min: 83.44   Med: 5717.89   Max: Negative Equity
Current: 175.69

During the past 13 years, Lennox International's highest ROE % was Negative Equity%. The lowest was 83.44%. And the median was 5,717.89%.

LII's ROE % is ranked better than
98.81% of 1677 companies
in the Construction industry
Industry Median: 6.53 vs LII: 175.69

Lennox International ROE % Historical Data

The historical data trend for Lennox International'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.

Lennox International ROE % Chart

Lennox International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Equity Negative Equity Negative Equity Negative Equity 1,435.77

Lennox International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % 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 469.70 259.89 152.03 207.91 143.61

Competitive Comparison of Lennox International's ROE %

For the Building Products & Equipment subindustry, Lennox International'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.


Lennox International's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Lennox International's ROE % distribution charts can be found below:

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



Lennox International ROE % Calculation

Lennox International's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=590.1/( (-203.1+285.3)/ 2 )
=590.1/41.1
=1,435.77 %

Lennox International's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=956/( (577.4+754)/ 2 )
=956/665.7
=143.61 %

* 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 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 data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Lennox International  (NYSE:LII) 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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=956/665.7
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(956 / 5992.4)*(5992.4 / 3267.55)*(3267.55 / 665.7)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.95 %*1.8339*4.9084
=ROA %*Equity Multiplier
=29.25 %*4.9084
=143.61 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=956/665.7
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (956 / 1175.6) * (1175.6 / 1218) * (1218 / 5992.4) * (5992.4 / 3267.55) * (3267.55 / 665.7)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8132 * 0.9652 * 20.33 % * 1.8339 * 4.9084
=143.61 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income 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.


Lennox International ROE % Related Terms

Thank you for viewing the detailed overview of Lennox International's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Lennox International Business Description

Traded in Other Exchanges
Address
2140 Lake Park Boulevard, Richardson, TX, USA, 75080
Lennox International manufactures and distributes heating, ventilating, air conditioning, and refrigeration products to replacement (75% of sales) and new construction (25% of sales) markets. In fiscal 2023, residential HVAC was 68% of sales and commercial HVAC and Heatcraft refrigeration was 32% of sales. The company goes to market with multiple brands, but Lennox is the company's flagship HVAC brand. The Texas-based company is focused on North America after the sale of its European HVAC and refrigeration businesses in late 2023.
Executives
Sherry Buck director PO BOX 10060, TOLEDO OH 436990060
Todd J Teske director
Chris Kosel officer: VP-Corp Controller and CAO 2140 LAKE PARK BLVD., RICHARDSON TX 75080
Joseph Nassab officer: EVP, President/COO Commercial 2140 LAKE PARK BLVD, RICHARDSON TX 75080
Prakash Bedapudi officer: EVP, Chief Technology Officer 2140 LAKE PARK BLVD, RICHARDSON TX 75080
Shane D Wall director 2140 LAKE PARK BLVD., RICHARDSON TX 75080
John D Torres officer: EVP, Chief Legal Officer 2140 LAKE PARK BLVD., RICHARDSON TX 75080
Karen H Quintos director ONE DELL WAY, ROUND ROCK TX 78682
Norris John W Iii director C/O LENNOX INTERNATIONAL INC., 2140 LAKE PARK BOULEVARD, RICHARDSON TX 76080-2254
Gary S Bedard officer: President and COO, WWR 2140 LAKE PARK BLVD, RICHARDSON TX 75080
Daniel M Sessa officer: EVP, Chief HR Officer 2140 LAKE PARK BLVD., RICHARDSON TX 75080
Joseph William Reitmeier officer: EVP & Chief Financial Officer 2140 LAKE PARK BLVD., RICHARDSON TX 75080
Elliot S Zimmer officer: EVP, President/COO Commercial 2140 LAKE PARK BLVD., RICHARDSON TX 75080
Alok Maskara officer: CEO 2140 LAKE PARK BLVD, RICHARDSON TX 75080
Todd M Bluedorn director, officer: Chairman and CEO 2140 LAKE PARK BLVD., RICHARDSON TX 75080