LGI Homes (LGIH)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,358,580	2,238,428	2,167,963	2,245,762	2,304,455	2,617,269	2,821,803	2,890,246	3,050,149	3,146,471	2,929,065	2,619,155	2,367,929	2,076,180	2,025,059	2,005,287	1,838,154	1,657,665	1,554,953	1,512,970
Property, plant and equipment	US$ in thousands	45,522	41,872	37,786	35,273	32,997	26,051	20,311	19,420	16,944	13,364	8,570	6,160	3,618	2,284	1,876	1,888	1,632	1,631	1,429	1,478
Fixed asset turnover		51.81	53.46	57.37	63.67	69.84	100.47	138.93	148.83	180.01	235.44	341.78	425.19	654.49	909.01	1,079.46	1,062.12	1,126.32	1,016.35	1,088.14	1,023.66

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,358,580K ÷ $45,522K
= 51.81

The fixed asset turnover ratio of LGI Homes Inc has been steadily decreasing over the past few quarters, indicating that the company is generating fewer sales from its fixed assets. From Q4 2022 to Q1 2023, there was a significant decline in the fixed asset turnover, reaching a low of 63.67. This implies that the company is less effective in utilizing its fixed assets to generate revenue during this period. However, it's worth noting that even at its lowest point, the fixed asset turnover ratio still remained relatively high, indicating that LGI Homes Inc has historically been efficient in generating revenue from its fixed assets. It is important for the company to monitor this ratio closely and explore strategies to improve the efficiency of its asset utilization in order to maintain sustainable growth and profitability.