LGI Homes (LGIH)

Total asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	1,838,154	1,657,665	1,554,953	1,512,970
Total assets	US$ in thousands	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	1,666,120	1,636,190	1,486,060	1,436,200
Total asset turnover		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	1.10	1.01	1.05	1.05

December 31, 2023 calculation

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

Total asset turnover is a key financial ratio that indicates how efficiently a company is using its assets to generate revenue. It is calculated by dividing net sales by average total assets. A higher total asset turnover ratio generally indicates better asset utilization.

Based on the provided data for LGI Homes Inc, the total asset turnover ratio has been fluctuating over the past eight quarters. The ratio ranged from a high of 1.11 in Q1 2022 to a low of 0.67 in Q3 2023. This variability suggests that the company's efficiency in generating sales from its total assets has been inconsistent.

A gradual decline in the total asset turnover ratio over time may indicate decreasing efficiency in asset utilization, potentially due to slower sales growth or an increase in total assets without proportionate revenue growth. Conversely, an increasing ratio may signal improved efficiency and effective use of assets to drive revenue.

Further analysis and comparison with industry benchmarks or historical data would be beneficial to determine the underlying factors influencing LGI Homes Inc's total asset turnover performance and to assess its overall operational efficiency.