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.