LGI Homes (LGIH)

Total asset 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
Total assets	US$ in thousands	3,407,850	3,124,830	2,351,860	1,826,090	1,666,120
Total asset turnover		0.69	0.74	1.30	1.30	1.10

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,358,580K ÷ $3,407,850K
= 0.69

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate sales.

LGI Homes Inc's total asset turnover has been fluctuating over the past five years. In 2023, the total asset turnover ratio decreased to 0.69 from 0.74 in 2022. This suggests a decline in the company's efficiency in generating sales from its assets compared to the previous year.

Furthermore, when comparing the current ratio to previous years, it is evident that LGI Homes Inc's total asset turnover has been relatively volatile. In 2021, the ratio was substantially higher at 1.30, indicating that the company was more efficient in utilizing its assets to generate revenue. The ratio remained the same in 2020 but then increased in 2019 to 1.10, suggesting a favorable trend in asset utilization.

Overall, LGI Homes Inc's total asset turnover ratio has shown variability over the years, which may be influenced by factors such as changes in the company's operational efficiency, business strategies, and market conditions. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset management efficiency.