LGI Homes (LGIH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 48,978 | 31,998 | 50,514 | 35,942 | 38,345 |
| Total current liabilities | US$ in thousands | 235,484 | 365,415 | 150,781 | 148,684 | 130,363 |
| Current ratio | 0.21 | 0.09 | 0.34 | 0.24 | 0.29 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $48,978K ÷ $235,484K
= 0.21
The current ratio of LGI Homes Inc has fluctuated over the past five years, ranging from a low of 8.67 in 2022 to a high of 16.18 in 2021. The current ratio measures a company's ability to cover its short-term liabilities with its current assets, with a higher ratio indicating a stronger liquidity position.
In 2023, LGI Homes Inc has a current ratio of 11.16, showing an improvement compared to the previous year. This suggests the company has $11.16 in current assets for every $1 of current liabilities, indicating a healthy liquidity position.
Overall, LGI Homes Inc has maintained relatively strong liquidity levels over the years, with the current ratio consistently above 1, indicating the company's ability to meet its short-term obligations. However, it is essential to monitor the current ratio over time to ensure the company's liquidity remains stable and sufficient to support its operational needs.
Peer comparison
Dec 31, 2023