LGI Homes (LGIH)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 53,197 | 60,903 | 51,071 | 48,996 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 137,926 | 212,251 | 272,635 | 266,026 | 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 |
| Quick ratio | 0.39 | 0.29 | 0.19 | 0.18 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($53,197K
+ $—K
+ $—K)
÷ $137,926K
= 0.39
The quick ratio of LGI Homes has shown fluctuations over the years. It decreased from 1.65 as of March 31, 2020, to a low of 0.09 by December 31, 2022. This indicates a significant decline in the company's ability to meet its short-term obligations with its most liquid assets.
However, the quick ratio improved thereafter, reaching 0.39 by December 31, 2023, and further increasing to 0.39 by December 31, 2024. While the ratio has increased from its lowest point, it is still below the ideal value of 1, suggesting potential liquidity challenges for the company.
Overall, the quick ratio trend for LGI Homes demonstrates some volatility, and stakeholders should monitor this metric closely to assess the company's liquidity position.
Peer comparison
Dec 31, 2024