LGI Homes (LGIH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,358,580 | 2,304,460 | 3,050,150 | 2,367,930 | 1,838,150 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,358,580K ÷ $—K
= —
The receivables turnover ratio of LGI Homes Inc has varied over the past five years. In 2023, the receivables turnover ratio was 57.08, a decrease from the previous year's ratio of 91.65. This indicates that LGI Homes converted its accounts receivables into cash 57.08 times during 2023, compared to 91.65 times in 2022.
The drop in the ratio from 2022 to 2023 may suggest that LGI Homes took longer to collect payments from its customers in 2023. However, it is important to note that a higher receivables turnover ratio is generally more favorable as it indicates a faster collection of receivables.
Looking at the trend over the five-year period, LGI Homes' receivables turnover ratio has fluctuated, with peaks in 2022 and 2019 at 91.65 and 32.60, respectively, and lower ratios in 2023, 2021, and 2020. This variability may be due to changes in the company's credit policies, customer payment behaviors, or business operations.
Overall, for LGI Homes Inc, maintaining a stable and efficient receivables turnover ratio is essential to ensure timely cash flow and effective management of accounts receivables.
Peer comparison
Dec 31, 2023