LGI Homes's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 11.06.
LGI Homes's Days Inventory for the
three
months ended in Mar. 2026 was 1240.04.
LGI Homes's Days Payable for the
three
months ended in Mar. 2026 was 9.61.
Therefore, LGI Homes's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 1,241.49.
LGI Homes (NAS:LGIH) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
LGI Homes Cash Conversion Cycle Related Terms
LGI Homes Cash Conversion Cycle Historical Data
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The historical data trend for LGI Homes's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LGIH vs DFH, HOV, BZH: Cash Conversion Cycle Comparison
For the Residential Construction subindustry, LGI Homes's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LGI Homes Cash Conversion Cycle vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where LGI Homes's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
LGI Homes's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Conversion Cycle of 1,241.49 mean?
LGI Homes (LGIH) has a Cash Conversion Cycle of 1,241.49 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on LGI Homes and its competitors.
Is LGI Homes' Cash Conversion Cycle too high?
LGI Homes' current Cash Conversion Cycle is 1,241.49. The Homebuilding & Construction industry median Cash Conversion Cycle is 273.39. LGI Homes' value of 1,241.49 is 354.1% above this industry median. Overall, LGI Homes has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Cash Conversion Cycle compare to DFH and HOV?
LGI Homes' Cash Conversion Cycle of 1,241.49 can be compared against companies in the Homebuilding & Construction industry. The industry median Cash Conversion Cycle is 273.39. LGI Homes' value of 1,241.49 is 354.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Homebuilding & Construction company?
The median Cash Conversion Cycle among Homebuilding & Construction companies is 273.39, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Cash Conversion Cycle of 1,241.49 is 354.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Cash Conversion Cycle is 273.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Cash Conversion Cycle is 1,241.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGI Homes stock overvalued right now?
Based on GuruFocus' analysis, LGI Homes (LGIH) is currently considered Modestly Undervalued. The stock's GF Value™ is $70.72, compared to a current price of $63.66 — trading 10% below its estimated fair value. The current Cash Conversion Cycle is 1,241.49 and 354.1% above the Homebuilding & Construction industry median of 273.39. LGI Homes' overall GF Score™ is 68/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For LGI Homes (LGIH), the current Cash Conversion Cycle is 1,241.49 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LGI Homes (LGIH) Overvalued in 2026?
Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued.
The current stock price of $63.66 is trading 10% below its estimated GF Value™ of $70.72.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Cash Conversion Cycle: 1,241.49
GF Value™: $70.72 vs. price of $63.66 (10% below fair value)
Industry Position: 354.1% above the Homebuilding & Construction median
No single metric tells the full story. See the LGIH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGI Homes Inc is engaged in the design, construction, and sale of new homes in markets. The company's current product offerings include entry-level homes, including both detached homes and townhomes, and move-up homes sold, which are sold under the LGI Homes brand, and luxury series homes, which are sold under the Terrata Homes brand. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances, and ceramic tile flooring. The company has seven operating segments: West, Northwest, Central, Midwest, Florida, Southeast, and Mid-Atlantic. The majority of the revenue is generated from the Central division segment.
68GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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