LGI HomesLGIH +5.02%68 Current Ratio is 27.38 as of Mar. 2026, which is 27% above its 10-year median of 21.48. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $70.72 (Fairly Valued). The stock has 12 warning signs investors should review. Among 95 Homebuilding & Construction companies, LGI Homes ranks better than 97.89% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. LGI Homes's current ratio for the quarter that ended in Mar. 2026 was 27.38.
LGI Homes has a current ratio of 27.38. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for LGI Homes's Current Ratio or its related term are showing as below:
LGIH'
s Current Ratio Range Over the Past 10 Years
Min: 3.8 Med: 21.48 Max: 37.18
Current: 27.38
During the past 13 years, LGI Homes's highest Current Ratio was 37.18. The lowest was 3.80. And the median was 21.48.
LGIH's Current Ratio is ranked better than 97.89% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 2.46
vs LGIH: 27.38
LGI Homes (NAS:LGIH) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
LGI Homes Current Ratio Related Terms
LGI Homes Current Ratio Historical Data
* Premium members only.
The historical data trend for LGI Homes's Current Ratio 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.
For the Residential Construction subindustry, LGI Homes's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Current Ratio distribution charts can be found below:
* The bar in red indicates where LGI Homes's Current Ratio falls into.
* 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.
LGI Homes (LGIH) has a Current Ratio of 27.38 as of Mar. 2026. This is 27% above median its historical median of 21.48. Over the past decade, LGI Homes' Current Ratio has ranged from 3.80 to 37.18. According to the industry distribution chart, LGI Homes ranks #2 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 2.1%.
Is LGI Homes' Current Ratio too high?
LGI Homes' current Current Ratio of 27.38 is 27% above median its 10-year median of 21.48. Over the past 10 years, this metric has ranged from a low of 3.80 to a high of 37.18. The Homebuilding & Construction industry median Current Ratio is 2.46. LGI Homes' value of 27.38 is 1013% above this industry median. Based on the distribution chart, LGI Homes ranks #2 out of 95 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, LGI Homes has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Current Ratio compare to DFH and BZH?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #2 out of 95 companies for Current Ratio. This places LGI Homes in the top 2% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.46. LGI Homes' value of 27.38 is 1013% above this benchmark. Historically, LGI Homes' own Current Ratio has ranged from 3.80 to 37.18 over the past decade. While the company's 10-year median is 21.48 vs. the industry median of 2.46, LGI Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Homebuilding & Construction company?
The median Current Ratio among Homebuilding & Construction companies is 2.46, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Current Ratio of 27.38 is 1013% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median Current Ratio is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Current Ratio is 27.38, which is 27% above median its own 10-year median of 21.48. 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 Fairly Valued. The stock's GF Value™ is $70.72, compared to a current price of $65.84 — trading 6.9% below its estimated fair value. The current Current Ratio is 27.38, which is 27% above median its 10-year median of 21.48 and 1013% above the Homebuilding & Construction industry median of 2.46. 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 Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For LGI Homes (LGIH), the current Current Ratio is 27.38 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 $65.84 is trading 6.9% below its estimated GF Value™ of $70.72.
GuruFocus considers LGI Homes to be Fairly Valued.
Key valuation signals for LGIH:
Current Ratio: 27.38 (27% above median its 10-year median of 21.48)
GF Value™: $70.72 vs. price of $65.84 (6.9% below fair value)
Industry Position: 1013% above the Homebuilding & Construction median (#2 of 95)
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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