LGI HomesLGIH +5.02%68 Quick Ratio is 0.79 as of Mar. 2026, which is 17% below its 10-year median of 0.95. 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 worse than 50.53% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. LGI Homes's quick ratio for the quarter that ended in Mar. 2026 was 0.79.
LGI Homes has a quick ratio of 0.79. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for LGI Homes's Quick Ratio or its related term are showing as below:
LGIH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.25 Med: 0.95 Max: 2.42
Current: 0.79
During the past 13 years, LGI Homes's highest Quick Ratio was 2.42. The lowest was 0.25. And the median was 0.95.
LGIH's Quick Ratio is ranked worse than 50.53% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 0.79
vs LGIH: 0.79
LGI Homes (NAS:LGIH) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
LGI Homes Quick Ratio Related Terms
LGI Homes Quick Ratio Historical Data
* Premium members only.
The historical data trend for LGI Homes's Quick 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 Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Quick Ratio distribution charts can be found below:
* The bar in red indicates where LGI Homes's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
LGI Homes's Quick Ratio 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.
LGI Homes (LGIH) has a Quick Ratio of 0.79 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on LGI Homes and its competitors. This is 17% below median its historical median of 0.95. Over the past decade, LGI Homes' Quick Ratio has ranged from 0.25 to 2.42. According to the industry distribution chart, LGI Homes ranks #48 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 50.5%.
Is LGI Homes' Quick Ratio too high?
LGI Homes' current Quick Ratio of 0.79 is 17% below median its 10-year median of 0.95. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 2.42. The Homebuilding & Construction industry median Quick Ratio is 0.79. LGI Homes' value of 0.79 is 0% at this industry median. Based on the distribution chart, LGI Homes ranks #48 out of 95 companies in the Homebuilding & Construction industry, which is below the industry midpoint. 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' Quick Ratio compare to DFH and BZH?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #48 out of 95 companies for Quick Ratio. This places LGI Homes in the lower half of its industry. The industry median Quick Ratio is 0.79. LGI Homes' value of 0.79 is 0% at this benchmark. Historically, LGI Homes' own Quick Ratio has ranged from 0.25 to 2.42 over the past decade. While the company's 10-year median is 0.95 vs. the industry median of 0.79, LGI Homes has consistently been at 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 Quick Ratio for a Homebuilding & Construction company?
The median Quick Ratio among Homebuilding & Construction companies is 0.79, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Quick Ratio of 0.79 is 0% at 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Quick Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Quick Ratio is 0.79, which is 17% below median its own 10-year median of 0.95. 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 Quick Ratio is 0.79, which is 17% below median its 10-year median of 0.95 and 0% at the Homebuilding & Construction industry median of 0.79. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For LGI Homes (LGIH), the current Quick Ratio is 0.79 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:
Quick Ratio: 0.79 (17% below median its 10-year median of 0.95)
GF Value™: $70.72 vs. price of $65.84 (6.9% below fair value)
Industry Position: 0% at the Homebuilding & Construction median (#48 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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