LGI Homes (LGIH)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	1,666,120	1,636,190	1,486,060	1,436,200
Total stockholders’ equity	US$ in thousands	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	845,193	777,047	725,235	676,926
Financial leverage ratio		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	1.97	2.11	2.05	2.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,407,850K ÷ $1,856,030K
= 1.84

Based on the data provided, LGI Homes Inc's financial leverage ratio has shown some fluctuations over the past eight quarters. The financial leverage ratio, which measures the company's level of debt relative to its equity, has ranged from 1.81 to 1.94 during this period.

The trend indicates that the company's financial leverage has been relatively stable, with minor fluctuations within a narrow range. The ratio has hovered around the mid-1.80s to low-1.90s, suggesting that LGI Homes Inc has maintained a moderate level of leverage throughout the quarters analyzed.

Overall, the financial leverage ratio of LGI Homes Inc appears to be within a reasonable range, reflecting a balanced mix of debt and equity in its capital structure. It's essential for the company to monitor this ratio closely to ensure optimal capital structure management and financial stability in the long term.