LGI Homes (LGIH)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 2,037,230 1,856,030 1,642,410 1,395,850 1,139,000
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,037,230K)
= 0.00

The debt-to-capital ratio for LGI Homes has been consistently at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt to finance its operations and investments relative to its total capital structure. A debt-to-capital ratio of 0.00 signifies that all of the company's capital is derived from equity or retained earnings rather than debt financing. This may suggest that LGI Homes has a strong financial position with low financial leverage and a lower risk of default.