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Lennar Altman Z-Score

: 4.13 (As of Today)
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Good Sign:

Altman Z-score of 4.15 is strong.

Lennar has a Altman Z-Score of 4.13, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Lennar's Altman Z-Score or its related term are showing as below:

NYSE:LEN' s Altman Z-Score Range Over the Past 10 Years
Min: 0.91   Med: 2.6   Max: 4.58
Current: 4.15

0.91
4.58

During the past 13 years, Lennar's highest Altman Z-Score was 4.58. The lowest was 0.91. And the median was 2.60.


Lennar Altman Z-Score Historical Data

The historical data trend for Lennar's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.02 2.74 3.14 3.66 -

Lennar Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
Altman Z-Score 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 3.66 3.92 4.27 4.42 -

Competitive Comparison

For the Residential Construction subindustry, Lennar's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Lennar's Altman Z-Score falls into.



Lennar Altman Z-Score Calculation

Altman 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.

Lennar's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.6216+1.4*0.4422+3.3*0.1752+0.6*2.2759+1.0*0.817
=4.13

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Aug. 2021:
Total Assets was $33,208 Mil.
Total Current Assets was $21,963 Mil.
Total Current Liabilities was $1,321 Mil.
Retained Earnings was $14,685 Mil.
Pre-Tax Income was 1580.805 + 1814.354 + 1096.885 + 1327.014 = $5,819 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 8433.56 + 6941.403 + 6430.245 + 5325.468 = $27,131 Mil.
Market Cap (Today) was $27,792 Mil.
Total Liabilities was $12,211 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(21962.722 - 1321.247)/33207.778
=0.6216

X2=Retained Earnings/Total Assets
=14685.329/33207.778
=0.4422

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(5819.058 - 0)/33207.778
=0.1752

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=27792.414/12211.496
=2.2759

X5=Revenue/Total Assets
=27130.676/33207.778
=0.817

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Lennar has a Altman Z-Score of 4.13 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Lennar  (NYSE:LEN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Lennar Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Lennar's Altman Z-Score 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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