LGI Homes (LGIH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) metric for LGI Homes Inc has shown some fluctuation over the past five years. In 2023, the DSO was at 6.39 days, representing the average number of days it takes for the company to collect payment from its customers after making a sale. This is an improvement from 2022 when the DSO was at 3.98 days, indicating more efficient collection of accounts receivable.
Looking back at 2021, the DSO was 6.93 days, which was slightly higher compared to 2023. In 2020, there was a significant increase in DSO to 17.87 days, suggesting a potential issue with collections efficiency or customer payment delays. However, in 2019, the DSO decreased to 11.20 days, indicating an improvement compared to 2020.
Overall, the trend in the DSO for LGI Homes Inc has been fluctuating, with the company experiencing periods of both improvement and challenges in collecting payments from customers. It is important for the company to continue monitoring and managing its accounts receivable effectively to ensure efficient cash flow management.
Peer comparison
Dec 31, 2023