LGI Homes (LGIH)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Total assets US$ in thousands 3,758,530 3,825,830 3,701,930 3,522,890 3,407,850 3,335,010 3,139,540 3,100,920 3,124,830 3,112,800 2,873,360 2,594,230 2,351,860 2,153,560 2,058,840 1,825,490 1,826,090 1,762,840 1,636,380 1,719,040
Total stockholders’ equity US$ in thousands 2,037,230 1,996,960 1,923,840 1,869,200 1,856,030 1,802,680 1,731,010 1,674,230 1,642,410 1,606,980 1,513,920 1,422,750 1,395,850 1,335,770 1,286,410 1,218,640 1,139,000 1,012,670 918,782 859,605
Financial leverage ratio 1.84 1.92 1.92 1.88 1.84 1.85 1.81 1.85 1.90 1.94 1.90 1.82 1.68 1.61 1.60 1.50 1.60 1.74 1.78 2.00

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,758,530K ÷ $2,037,230K
= 1.84

The financial leverage ratio of LGI Homes has shown a downward trend from 2.00 as of March 31, 2020, to 1.84 as of December 31, 2024. This indicates that the company has been decreasing its reliance on debt to finance its operations and investments over the years. The ratio peaked at 2.00 in March 2020 but has since been gradually declining, signaling improved financial stability and a stronger equity position relative to debt. However, the ratio saw a slight increase in the most recent data point of June 30, 2024, reaching 1.92, suggesting a potential uptick in debt usage compared to the previous periods. The overall trend indicates that LGI Homes has been managing its leverage effectively by balancing debt and equity in its capital structure.