LGI Homes (LGIH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,407,850 | 3,124,830 | 2,351,860 | 1,826,090 | 1,666,120 |
| Total stockholders’ equity | US$ in thousands | 1,856,030 | 1,642,410 | 1,395,850 | 1,139,000 | 845,193 |
| Financial leverage ratio | 1.84 | 1.90 | 1.68 | 1.60 | 1.97 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,407,850K ÷ $1,856,030K
= 1.84
The financial leverage ratio of LGI Homes Inc has fluctuated over the past five years, ranging from 1.60 to 1.97. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure. In the case of LGI Homes Inc, the ratio decreased from 1.97 in 2019 to 1.60 in 2020, suggesting a reduction in the company's reliance on debt financing during that period.
However, the ratio increased in subsequent years, reaching 1.90 in 2022 and then 1.84 in 2023. The rising trend in the financial leverage ratio indicates a potential increase in the company's debt levels relative to equity in those years.
Overall, the financial leverage ratio of LGI Homes Inc has shown variability, reflecting changing levels of debt in the company's capital structure. Investors and stakeholders may monitor this ratio to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023