LGI Homes (LGIH)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 3,407,850 | 3,124,830 | 2,351,860 | 1,826,090 | 1,666,120 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,407,850K
= 0.00
The debt-to-assets ratio of LGI Homes Inc has shown variability over the past five years. In 2023 and 2022, the ratio remained stable at 0.40, indicating that 40% of the company's assets were financed by debt in those years. This suggests a consistent level of leverage in those periods.
In 2021, the ratio decreased to 0.34, implying a lower reliance on debt to finance assets compared to the previous year. This might indicate improved financial strength and decreased financial risk.
The ratio further decreased to 0.29 in 2020, suggesting an even lower proportion of assets financed by debt. This could indicate prudent financial management and a stronger balance sheet position.
However, in 2019, the debt-to-assets ratio increased to 0.41, which indicates that a larger portion of the company's assets were financed by debt that year. This could signal increased financial risk and leverage.
Overall, LGI Homes Inc's debt-to-assets ratio has exhibited fluctuations over the five-year period, with a general trend of stability and moderate reliance on debt for asset financing. It's essential to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and risk profile.
Peer comparison
Dec 31, 2023