LGI Homes (LGIH)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		0.69	0.67	0.68	0.67	0.67	0.72	0.82	0.93	1.07	1.20	1.23	1.20	1.12	1.02	1.06	1.03	0.93	0.85	0.89	0.88
DOH	days	525.52	546.18	537.98	540.83	547.26	509.78	446.48	393.49	341.09	303.23	297.73	304.00	324.60	359.04	345.25	353.84	390.51	428.97	412.24	414.75

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.69
= 525.52

LGI Homes Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH was 624.48 days, indicating a slight decrease compared to the previous quarter. However, it is important to note that the DOH has been consistently high, ranging from 563.58 days to 642.06 days over the past two years. This suggests that LGI Homes Inc may be carrying a high level of inventory relative to its sales, which could potentially lead to higher carrying costs and lower liquidity. Management should closely monitor inventory levels and implement strategies to optimize inventory turnover and reduce excess inventory.