LGI Homes (LGIH)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	48,978	46,981	43,334	42,966	31,998	52,660	41,971	53,325	50,514	46,717	111,704	48,157	35,942	46,335	49,102	118,232	38,345	37,030	37,555	35,084
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	235,484	341,970	355,130	380,857	365,415	202,395	131,140	109,052	150,781	89,584	120,545	123,556	148,684	78,989	92,582	71,727	130,363	107,782	95,902	51,794
Cash ratio		0.21	0.14	0.12	0.11	0.09	0.26	0.32	0.49	0.34	0.52	0.93	0.39	0.24	0.59	0.53	1.65	0.29	0.34	0.39	0.68

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($48,978K + $—K) ÷ $235,484K
= 0.21

The cash ratio for LGI Homes Inc has shown fluctuations over the past eight quarters, ranging from a low of 0.09 in Q4 2022 to a high of 0.33 in Q1 2022. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

A higher cash ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may suggest potential liquidity issues. LGI Homes Inc's cash ratio has generally been on the lower side, with an average ratio of approximately 0.16 over the past eight quarters.

It's important to note that an excessively high cash ratio may indicate that the company is not efficiently deploying its excess cash and could potentially seek better investment opportunities to generate higher returns. Conversely, a consistently low cash ratio could signal that the company may have difficulty meeting its short-term financial obligations.

Overall, LGI Homes Inc's cash ratio trend should be further analyzed in conjunction with other liquidity and financial metrics to assess its overall financial health and cash management strategies.