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Lennox International key statistics and ratios

In fiscal 2025, Lennox International had return on equity of 75.8%, an operating margin of 20.0%, debt equal to 119.4% of equity and a current ratio of 1.60. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2009Dec 20092010Dec 20102011Dec 20112012Dec 20122013Dec 20132014Dec 20142015Dec 20152016Dec 20162017Dec 20172018Dec 20182019Dec 20192020Dec 20202021Dec 20212022Dec 20222023Dec 20232024Dec 20242025Dec 2025LTMSept 2026
Gross margin27.7%27.1%23.6%24.5%26.9%26.8%27.3%29.6%29.3%28.6%28.4%28.6%28.3%27.2%31.1%33.3%33.4%32.6%
Operating margin3.8%7.9%6.5%7.4%9.0%9.9%8.8%11.8%12.9%13.1%17.3%13.2%14.1%13.9%15.9%19.5%20.0%18.8%
Net margin1.8%4.5%3.1%3.1%5.4%6.1%5.4%7.6%8.0%9.2%10.7%9.8%11.1%10.5%11.9%15.2%15.5%13.8%
Free-cash-flow margin5.9%5.5%1.2%5.8%4.1%2.9%8.2%8.0%5.9%10.3%7.6%14.7%9.7%4.3%9.8%14.6%12.3%15.3%
Return on equity8.5%19.4%16.7%18.6%34.9%83.2%—————————119.7%75.8%60.5%
Return on assets3.3%7.2%5.2%5.3%10.4%12.1%10.8%16.2%16.7%19.4%21.2%17.5%22.1%21.0%21.5%24.7%20.9%17.1%
Asset turnover1.841.601.671.741.931.992.012.122.102.091.981.792.001.991.811.631.351.24
Current ratio1.401.541.751.651.261.191.141.131.741.081.121.551.420.941.551.551.601.21
Debt to equity38.3%54.0%99.2%77.6%82.4%>999%729.4%>999%>999%—————332.1%119.3%119.4%123.1%
Interest cover (operating income ÷ interest)13.3x16.0x11.0x12.8x19.9x19.5x12.9x15.9x16.2x13.3x13.8x16.9x23.6x17.0x15.3x26.9x25.5x16.2x
Effective tax rate—34.0%33.4%33.1%34.4%34.5%33.8%30.8%33.8%23.0%19.5%19.8%17.2%19.3%20.0%18.8%19.2%21.8%
R&D as % of revenue1.7%1.9%1.8%1.7%1.7%1.8%1.8%1.8%1.9%1.9%1.8%1.8%1.8%1.7%1.9%1.8%2.0%—
SG&A as % of revenue22.6%19.0%16.8%17.2%17.8%17.0%16.7%17.1%16.6%15.7%15.4%15.3%14.3%13.3%14.2%13.7%13.1%13.2%
Capital spending as % of revenue2.1%1.7%1.5%1.7%2.4%2.6%2.0%2.3%2.6%2.5%2.8%2.2%2.5%2.1%5.0%3.1%2.3%2.8%
Free cash flow ÷ net income326.2%122.8%39.4%190.2%76.8%46.8%152.0%104.2%74.2%111.5%71.1%149.8%88.1%40.5%82.2%96.4%79.3%111.4%
Dividends ÷ net income60.9%27.9%41.3%52.9%19.8%25.6%31.8%24.8%26.1%26.2%27.0%33.1%27.3%28.6%25.9%19.8%21.5%24.4%
Dividends and buybacks ÷ free cash flow22.0%130.4%448.9%57.1%120.5%625.4%20.9%127.4%145.4%135.9%175.7%40.9%177.8%219.7%31.6%27.3%102.6%76.0%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

4 of 6 checks passed · September 30, 2026
What it owns · $4.7bn
Short-term assets $2.2bnLonger-term assets $2.5bn
What it owes, and who funded it · $4.7bn
Short-term liabilities $1.8bnLonger-term liabilities $1.5bnShareholders' equity $1.3bn
  • Short-term assets cover short-term liabilities $2.2bn of assets due within a year against $1.8bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $2.2bn short-term assets against $1.5bn of longer-dated liabilities.
  • More cash than debt $43m of cash against $847m of debt.
  • Debt below 40% of shareholders' equity Debt is 64% of equity.
  • Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
  • A year's operating cash flow covers at least 20% of debt $989m of operating cash flow against $847m of debt.
  • Operating profit covers interest at least five times over Operating income of $1.0bn against $63m of interest.

From Lennox International's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

74 /100

Strong moat

How hard Lennox International's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Cash operating profit has been a median 23.9% of total assets over 10 years.

  • Pricing power 11 / 20

    Gross margin has been a median 29.3%, moving by 2.1 percentage points (standard deviation) across 10 years.

  • Durability 14 / 20

    Operating margin has been a median 15.1%; its worst year was 11.9%.

  • Cash conversion 15 / 20

    Free cash flow was positive in 10 of 10 years, at a median 9.2% of revenue.

  • Discipline 19 / 20

    The diluted share count fell 8.0% over five years; stock-based pay has been a median 0.6% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (79 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Lennox International's SEC filings (10-K and 10-Q), retrieved October 29, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Lennox International.