LGI Homes (LGIH)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	233,255	390,107	547,698	364,710	227,538
Total assets	US$ in thousands	3,407,850	3,124,830	2,351,860	1,826,090	1,666,120
Operating ROA		6.84%	12.48%	23.29%	19.97%	13.66%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $233,255K ÷ $3,407,850K
= 6.84%

LGI Homes Inc's operating return on assets (ROA) has been showing a decreasing trend over the past five years. The operating ROA decreased from 13.66% in 2019 to 6.84% in 2023. This decline indicates that the company's ability to generate operating income from its assets has weakened over time. It is crucial for LGI Homes Inc to assess and address the factors contributing to this decline in order to improve its operational efficiency and profitability in the future.