LGI Homes (LGIH)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 196,071 | 199,227 | 326,567 | 429,645 | 323,895 |
| Total assets | US$ in thousands | 3,758,530 | 3,407,850 | 3,124,830 | 2,351,860 | 1,826,090 |
| ROA | 5.22% | 5.85% | 10.45% | 18.27% | 17.74% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $196,071K ÷ $3,758,530K
= 5.22%
LGI Homes' return on assets (ROA) has displayed varying trends over the years. The ROA stood at 17.74% as of December 31, 2020, showing a strong performance. Subsequently, the ROA increased to 18.27% by December 31, 2021, indicating continued efficiency in asset utilization.
However, there was a noticeable decline in ROA to 10.45% by December 31, 2022, suggesting a potential decrease in the company's ability to generate profits from its assets efficiently. This was followed by a further decrease to 5.85% by December 31, 2023, indicating a continued downward trend in asset profitability.
By December 31, 2024, LGI Homes' ROA decreased even further to 5.22%, indicating a continued challenge in utilizing assets effectively to generate returns. Overall, the declining trend in ROA signals potential inefficiencies in the company's asset management and profitability over the years.
Peer comparison
Dec 31, 2024