LGI Homes (LGIH)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
LGI Homes Inc's days of sales outstanding (DSO) is a measure of the average number of days it takes for the company to collect payment after making a sale. Analyzing the trend of DSO over the past eight quarters reveals fluctuations in the efficiency of the company's accounts receivable management.
In Q4 2023, the DSO increased to 6.39 days from the previous quarter. This indicates a slight delay in collecting payments compared to Q3 2023, but still within a reasonable range. The peak DSO of 8.11 days in Q2 2023 suggests a longer collection period, which may warrant attention to improve cash flow efficiency.
On the positive side, Q1 2023 and Q4 2022 showed lower DSO figures of 3.55 days and 3.98 days, respectively, suggesting swift collection of sales proceeds during those periods. Q1 2023 stands out as the most efficient collection period over the past two years.
Overall, LGI Homes Inc's DSO fluctuates within a range and has shown periods of efficient collections. However, management may need to monitor and address any spikes in DSO to ensure optimal cash flow management and liquidity in the future.
Peer comparison
Dec 31, 2023