LGI Homes (LGIH)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,856,030 | 1,642,410 | 1,395,850 | 1,139,000 | 845,193 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,856,030K)
= 0.00
The debt-to-capital ratio of LGI Homes Inc has shown some fluctuations over the past five years. In 2023, the ratio stands at 0.42, slightly lower than 2022 but higher than 2021. This indicates that 42% of the company's capital is financed through debt at the end of 2023. The trend suggests that the company has been gradually increasing its reliance on debt financing since 2021 when the ratio was at 0.37.
While the current ratio of 0.42 is lower than the ratio in 2019, when it was 0.45, it is important to note that the company's financial structure may have changed over the years due to various factors such as business expansion, economic conditions, or strategic decisions. The increase in the debt-to-capital ratio could imply a shift towards leveraging more debt to fund operations, acquisitions, or other investments.
Overall, the trend in LGI Homes Inc's debt-to-capital ratio indicates a varying level of debt funding in the company's capital structure. Further analysis and comparison with industry benchmarks or peers may provide additional insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023