LGI Homes (LGIH)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | — | — | — | — | — | |
| Number of days of payables | days | — | — | — | — | — |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ —
= —
The number of days of payables for LGI Homes Inc has shown a fluctuating trend over the past five years. As of December 31, 2023, the company averaged 6.35 days to pay its trade payables, which is an increase from the prior year. This indicates that LGI Homes took a slightly longer time to settle its outstanding payables in 2023 compared to 2022.
Looking at the historical data, there has been a general upward trend in the number of days of payables since 2021 when it was at its lowest level of 2.32 days. This suggests a potential shift in the company's payment behavior towards a slightly longer payment cycle.
It is important to further analyze the reasons behind this trend to assess the impact on the company's liquidity and financial health. A longer number of days of payables may provide LGI Homes with some short-term cash flow benefits but could also strain relationships with suppliers if payment terms are not met promptly.
Peer comparison
Dec 31, 2023