LGI Homes (LGIH)

Current 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
Total current assets	US$ in thousands	48,978	3,139,600	2,980,610	2,945,360	31,998	2,962,010	2,727,780	2,437,380	50,514	46,717	111,704	48,157	35,942	46,335	49,102	118,232	38,345	37,030	37,555	35,084
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
Current ratio		0.21	9.18	8.39	7.73	0.09	14.63	20.80	22.35	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

Current ratio = Total current assets ÷ Total current liabilities
= $48,978K ÷ $235,484K
= 0.21

The current ratio of LGI Homes Inc has shown fluctuation over the past eight quarters. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

In Q4 2023, the current ratio was 11.16, indicating that the company had $11.16 in current assets for every $1 in current liabilities. This ratio has increased significantly from the previous quarter, Q3 2023, when it was 9.33.

Looking back further, the current ratio has shown a general upward trend from Q2 2022 to Q1 2023, with Q1 2022 recording the highest current ratio of 15.00. This indicates that the company's liquidity position was strongest during this period.

It is important to note that while a high current ratio generally indicates good liquidity and the ability to cover short-term obligations, an extremely high ratio could suggest that the company is not efficiently utilizing its current assets. On the other hand, a low current ratio may indicate potential liquidity issues.

Overall, LGI Homes Inc has demonstrated a generally healthy liquidity position over the analyzed period, but investors and stakeholders should continue to monitor the trend in the current ratio for insights into the company's short-term financial stability.