LGIH (LGI Homes) Inventory Turnover: 0.07 (As of Mar. 2026)

What is LGI Homes Inventory Turnover?

LGI Homes LGIH +1.91% 68 Inventory Turnover is 0.07 as of Mar. 2026. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $70.89 (Modestly Undervalued). The stock has 12 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. LGI Homes's Cost of Goods Sold for the three months ended in Mar. 2026 was $260 Mil. LGI Homes's Average Total Inventories for the quarter that ended in Mar. 2026 was $3,531 Mil. LGI Homes's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.07.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. LGI Homes's Days Inventory for the three months ended in Mar. 2026 was 1,240.04.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. LGI Homes's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 11.04.

LGI Homes (NAS:LGIH) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

LGI Homes's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2026 )	/	Cost of Goods Sold (Q: Mar. 2026 )	*	Days in Period
	=	3530.647	/	259.807	*	365 / 4
	=	1,240.04

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

LGI Homes's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	3530.647	/	319.736
	=	11.04

* 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.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

LGI Homes Inventory Turnover Related Terms

LGI Homes Inventory Turnover Historical Data

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The historical data trend for LGI Homes's Inventory Turnover can be seen below:

LGI Homes Inventory Turnover Chart

LGI Homes Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Inventory Turnover

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1.22

0.67

0.60

0.51

0.39

LGI Homes Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Inventory Turnover	Get a 7-Day Free Trial															0.08	0.10	0.09	0.11	0.07

68GF Score

LGI Homes Inc LGIH

Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.

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LGI Homes Inventory Turnover Calculation

LGI Homes's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

	Inventory Turnover (A: Dec. 2025 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2025 )	/ (	(Total Inventories (A: Dec. 2024 )	+	Total Inventories (A: Dec. 2025 ))	/	count )
=	1351.958	/ (	(3387.853	+	3520.563)	/	2 )
=	1351.958	/	3454.208
=	0.39

LGI Homes's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

	Inventory Turnover (Q: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2026 )	/ (	(Total Inventories (Q: Dec. 2025 )	+	Total Inventories (Q: Mar. 2026 ))	/	count )
=	259.807	/ (	(3520.563	+	3540.731)	/	2 )
=	259.807	/	3530.647
=	0.07

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.07 mean?

LGI Homes (LGIH) has a Inventory Turnover of 0.07 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on LGI Homes and its competitors.

Is LGI Homes' Inventory Turnover too high?

LGI Homes' current Inventory Turnover is 0.07. 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' Inventory Turnover compare to DFH and HOV?

LGI Homes' Inventory Turnover of 0.07 can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Inventory Turnover for a Homebuilding & Construction company?

A good Inventory Turnover depends on the Homebuilding & Construction industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Inventory Turnover mean?

A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on LGI Homes and its competitors. LGI Homes's current Inventory Turnover is 0.07. 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 $70.89, compared to a current price of $62.07 — trading 12.4% below its estimated fair value. The current Inventory Turnover is 0.07. 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 Inventory Turnover calculated?

Inventory Turnover is calculated from a company's financial statements. For LGI Homes (LGIH), the current Inventory Turnover is 0.07 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 $62.07 is trading 12.4% below its estimated GF Value™ of $70.89. GuruFocus considers LGI Homes to be Modestly Undervalued.

Key valuation signals for LGIH:

Inventory Turnover: 0.07
GF Value™: $70.89 vs. price of $62.07 (12.4% below fair value)
GF Score™: 68/100 with 12 warning signs

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 Business Description

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies DFH HOV BZH LEGH VNJA NOBH SPHL DREM BDCC GRBK DHI PHM LEN NVR TOL TSE:1928 TMHC IBP MTH LSE:BTRW

Other Exchanges 0JSI:UK LG1:Germany

Address 1450 Lake Robbins Drive, Suite 430, The Woodlands, TX, USA, 77380

Website https://www.lgihomes.com

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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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$62.07

Price

$70.89

GF Value

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