LGI Homes (LGIH)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 196,071 197,290 194,757 189,318 199,227 181,253 204,601 274,843 326,567 403,755 413,915 408,673 429,645 454,770 443,224 380,714 323,895 252,337 212,682 203,113
Total assets US$ in thousands 3,758,530 3,825,830 3,701,930 3,522,890 3,407,850 3,335,010 3,139,540 3,100,920 3,124,830 3,112,800 2,873,360 2,594,230 2,351,860 2,153,560 2,058,840 1,825,490 1,826,090 1,762,840 1,636,380 1,719,040
ROA 5.22% 5.16% 5.26% 5.37% 5.85% 5.43% 6.52% 8.86% 10.45% 12.97% 14.41% 15.75% 18.27% 21.12% 21.53% 20.86% 17.74% 14.31% 13.00% 11.82%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $196,071K ÷ $3,758,530K
= 5.22%

LGI Homes' Return on Assets (ROA) has shown a declining trend from 11.82% in March 2020 to 5.22% by December 2024. The ROA reached its peak in June 2021 at 21.53%, indicating efficiency in generating profit relative to its total assets. However, the subsequent quarters saw a consistent decrease in ROA, which may suggest declining profitability and/or asset utilization efficiency. Overall, the decreasing trend in ROA highlights the importance of closely monitoring LGI Homes' asset management and profitability performance over time.