LGI Homes (LGIH)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,856,030K
= 0.00
The debt-to-equity ratio of LGI Homes Inc has fluctuated over the past five years. In 2023, the ratio stood at 0.73, showing a decrease from the previous year's ratio of 0.77. This signifies that the company had a lower level of debt relative to its equity in 2023 compared to 2022. However, the 2023 ratio is higher than that of 2021, which was 0.58, indicating an increase in leverage that year.
Looking further back, in 2020, the debt-to-equity ratio was 0.47, showing a relatively low level of debt compared to equity. This increased to 0.82 in 2019, indicating a significant rise in leverage that year.
Overall, the trend in the debt-to-equity ratio for LGI Homes Inc has been somewhat volatile over the past five years, with fluctuations in the level of debt relative to equity. The company should continue to monitor and manage its debt levels effectively to maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023