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← Lennar

The business behind the dividend

MeasureLENMedianFormula
Return on equity9.5%11.7%Net income ÷ shareholders’ equity
Return on capital employed10.1%10.1%Operating income ÷ (equity + total debt)
Owner earnings$2.02bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$28.18m$746.10mOperating cash flow − capital expenditure
Operating margin8.2%15.0%Operating income ÷ revenue
Net margin6.1%10.2%Net income ÷ revenue
Debt to equity0.27x0.79xTotal debt ÷ shareholders’ equity
Interest cover56.12x4.43xOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.10x1.78xOperating cash flow ÷ net income

Not computed here: Current ratio — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity9.5%14.1%14.8%19.1%21.3%13.7%11.6%11.6%10.3%13.0%13.0%
Return on capital employed10.1%16.2%13.7%10.9%13.7%
Operating margin8.2%14.6%15.2%17.9%21.4%15.5%12.5%12.0%11.7%14.3%14.3%
Net margin6.1%11.1%11.5%13.7%16.3%11.0%8.3%8.2%6.4%8.3%8.3%
Debt to equity0.27x0.15x0.41x0.60x0.41x
Cash conversion0.10x0.61x1.32x0.71x0.57x1.70x0.80x1.00x1.21x0.56x0.71x