LGI Homes (LGIH)

LGI Homes Inc's solvency ratios indicate its ability to meet financial obligations and maintain a healthy capital structure. The debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.29 to 0.41, suggesting that the company has maintained a moderate level of debt compared to its total assets.

Similarly, the debt-to-capital ratio has also shown consistency, ranging from 0.32 to 0.45, indicating that LGI Homes has maintained a relatively stable mix of debt and equity in its capital structure.

The debt-to-equity ratio has fluctuated over the years, decreasing from 0.82 in 2019 to 0.73 in 2023. This suggests that the company has reduced its reliance on debt in financing its operations, which is generally viewed positively by investors and creditors.

The financial leverage ratio, which measures the proportion of assets financed by debt, has ranged from 1.60 to 1.97 over the period under review. A higher financial leverage ratio indicates a higher level of financial risk, but LGI Homes has shown some improvement in this metric over the years.

Overall, LGI Homes Inc's solvency ratios demonstrate a stable and improving financial position in terms of its ability to meet its debt obligations and maintain a healthy capital structure.

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Coverage ratios

Based on the data provided, it appears that the interest coverage ratio for LGI Homes Inc is not available for the years 2019, 2020, 2021, 2022, and 2023. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. Without this ratio information, it is challenging to assess how easily LGI Homes Inc can cover its interest expenses. In order to provide a more comprehensive analysis of the company's financial health and ability to handle debt obligations, it would be beneficial to have access to the interest coverage ratio figures for the specified years.