LGI Homes (LGIH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,158,420 | 1,933,050 | 2,232,120 | 1,764,830 | 1,401,680 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,158,420K ÷ $—K
= —
LGI Homes Inc's payables turnover has been fluctuating over the past five years. In 2019, the payables turnover was 112.18, which increased to 129.05 in 2020, further increasing to 157.50 in 2021. However, there was a decline in the payables turnover to 65.56 in 2022 and further to 57.45 in 2023.
A high payables turnover ratio indicates that the company is efficiently managing its payables by paying off suppliers quickly. Conversely, a lower payables turnover ratio may suggest that the company is taking longer to pay off its suppliers, possibly indicating liquidity issues or strained supplier relationships.
In the case of LGI Homes Inc, the decreasing trend in payables turnover from 2021 to 2023 could signify a lengthening in the time taken by the company to pay its suppliers, which may need further investigation to understand the underlying reasons and implications for the company's financial health and operations.
Peer comparison
Dec 31, 2023