Lennox International (FRA:LXI) ROCE % : 36.23% (As of Mar. 2024)

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What is Lennox International ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lennox International's annualized ROCE % for the quarter that ended in Mar. 2024 was 36.23%.

Lennox International ROCE % Historical Data

The historical data trend for Lennox International's ROCE % 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.

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Lennox International ROCE % Chart

Lennox International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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61.09

38.59

45.41

58.73

57.00

Lennox International Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															50.06	89.25	52.21	43.77	36.23

Lennox International ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	727.639	/	( ( (2423.814 - 1506.341)	+	(2566.041 - 930.388) )	/ 2 )
	=	727.639	/	( (917.473	+	1635.653)	/ 2 )
	=	727.639	/	1276.563
	=	57.00 %

Lennox International's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	610.88	/	( ( (2566.041 - 930.388)	+	(2746.568 - 1009.608) )	/ 2 )
	=	610.88	/	( ( 1635.653	+	1736.96 )	/ 2 )
	=	610.88	/	1686.3065
	=	36.23 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Lennox International (FRA:LXI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Lennox International ROCE % Related Terms

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Lennox International (FRA:LXI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Lennox International Inc (FRA:LXI) » Definitions » ROCE %

Comparable Companies

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LII:USA

Address

2140 Lake Park Boulevard, Richardson, TX, USA, 75080

Website

https://www.lennoxinternational.com

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 2022, residential HVAC was 68% of sales, commercial HVAC was 19%, and refrigeration accounted for the remaining 13% of sales. The company goes to market with multiple brands, but Lennox is the company's flagship HVAC brand. The Texas-based company will be focused on North America after the sale of its European HVAC and refrigeration businesses in late 2023.

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