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 | ||
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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.
Peer comparison
Dec 31, 2024