LGI Homes (LGIH)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,502,048	2,553,066	2,518,751	2,561,524	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
Total assets	US$ in thousands	3,758,530	3,825,830	3,701,930	3,522,890	3,407,850	3,335,010	3,139,540	3,100,920	3,124,830	3,112,800	2,873,360	2,594,230	2,351,860	2,153,560	2,058,840	1,825,490	1,826,090	1,762,840	1,636,380	1,719,040
Total asset turnover		0.67	0.67	0.68	0.73	0.69	0.67	0.69	0.72	0.74	0.84	0.98	1.11	1.30	1.46	1.42	1.43	1.30	1.18	1.24	1.17

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,502,048K ÷ $3,758,530K
= 0.67

The total asset turnover for LGI Homes has demonstrated fluctuations over the years, ranging from a peak of 1.46 in September 2021 to a low of 0.67 in September 2024. The ratio measures the company's ability to generate sales relative to its total assets. A higher total asset turnover indicates that the company is efficiently utilizing its assets to generate revenue.

LGI Homes experienced an increasing trend in total asset turnover from March 2021 to September 2021, indicating improved asset utilization efficiency during that period. However, the ratio started declining from December 2021 onwards, reaching a low point by December 2024.

The decreasing trend in total asset turnover from 2021 to 2024 may signal potential issues in asset management efficiency or declining sales relative to total assets. Further analysis of the company's operational performance and asset utilization strategies would be necessary to better understand the implications of the decreasing total asset turnover for LGI Homes.