LGI Homes (LGIH)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 2,202,600 | 2,358,580 | 2,304,460 | 3,050,150 | 2,367,930 |
Total current assets | US$ in thousands | 3,469,770 | 3,197,940 | 2,955,440 | 2,194,330 | 1,721,370 |
Total current liabilities | US$ in thousands | 137,926 | 235,484 | 365,415 | 150,781 | 148,684 |
Working capital turnover | 0.66 | 0.80 | 0.89 | 1.49 | 1.51 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,202,600K ÷ ($3,469,770K – $137,926K)
= 0.66
LGI Homes' working capital turnover has exhibited a downward trend over the past five years, declining from 1.51 in December 31, 2020, to 0.66 in December 31, 2024. This indicates that the company's efficiency in generating revenue from its working capital has decreased over time. A lower working capital turnover suggests that LGI Homes may be facing challenges in effectively utilizing its working capital to support its operations and generate sales. It may be necessary for the company to review its working capital management strategies to improve efficiency and maximize profitability in the future.
Peer comparison
Dec 31, 2024