LGI Homes (LGIH)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	199,227	326,567	429,645	323,895	178,608
Total assets	US$ in thousands	3,407,850	3,124,830	2,351,860	1,826,090	1,666,120
ROA		5.85%	10.45%	18.27%	17.74%	10.72%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $199,227K ÷ $3,407,850K
= 5.85%

LGI Homes Inc's return on assets (ROA) has shown a downward trend over the five-year period from 2019 to 2023. The ROA decreased from 10.72% in 2019 to 5.85% in 2023. This decline signifies a decrease in the company's efficiency in generating profits from its assets.

The ROA of 18.27% in 2021 was the highest during the period, indicating that LGI Homes was most efficient in utilizing its assets to generate profits in that year. However, there has been a consistent decrease in ROA since then.

It is important to further investigate the reasons behind this decreasing trend in ROA to identify any inefficiencies in asset management and operational performance. Additional analysis of other financial metrics and external factors impacting the company could provide a more comprehensive understanding of LGI Homes Inc's financial health and performance.