LGI Homes (LGIH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
LGI Homes has maintained a consistent and strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios. These ratios have stayed at 0.00 across all reported periods, signaling that the company has not relied heavily on debt to finance its operations or investments.
The financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown a slight increase over the years but has generally remained below 2.00. This indicates that LGI Homes has a relatively conservative capital structure and has not taken on excessive leverage that could pose a risk to its financial stability.
Overall, LGI Homes' solvency ratios demonstrate a healthy financial position with limited reliance on debt and a conservative approach to managing its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 36.01 | 8.23 | 4.57 | 4.19 | 3.87 | 4.70 | 10.47 | 13.97 | 22.69 | 69.11 | 137.48 | — | — | — | — | — | — | — | — |
The interest coverage ratio for LGI Homes provides insight into the company's ability to cover its interest expenses with its operating income. From the data provided, we see that LGI Homes had no reported interest coverage ratios from March 31, 2020, to December 31, 2024.
Starting from March 31, 2022, the interest coverage ratio for LGI Homes was 137.48, indicating that the company's operating income was 137 times higher than its interest expenses. This high ratio suggests that LGI Homes had a strong ability to meet its interest obligations at that time.
However, the interest coverage ratio declined over the subsequent periods, reaching a low of 3.87 on September 30, 2023. A ratio below 1 would indicate that the company's operating income is not sufficient to cover its interest expenses, potentially raising concerns about its financial health.
By the end of December 31, 2024, LGI Homes' interest coverage ratio had improved to 36.01, showing a recovery in its ability to cover interest costs compared to the previous periods.
Overall, analyzing the trend in LGI Homes' interest coverage ratio indicates fluctuations in the company's ability to cover its interest expenses over the observed period, with potential implications for its financial performance and risk management.