Century Communities Inc (CCS)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	440,073	430,951	433,038	391,150	350,827	327,155	387,230	532,133	676,900	786,675	760,362	698,848	641,121	550,144	469,268	367,237	270,276	203,075	173,030	143,722
Revenue (ttm)	US$ in thousands	4,398,293	4,330,443	4,082,996	3,887,737	3,692,184	3,665,734	3,920,601	4,242,550	4,505,910	4,533,580	4,347,322	4,224,092	4,216,312	3,997,290	3,833,619	3,567,153	3,161,192	2,965,956	2,761,957	2,605,463
Pretax margin		10.01%	9.95%	10.61%	10.06%	9.50%	8.92%	9.88%	12.54%	15.02%	17.35%	17.49%	16.54%	15.21%	13.76%	12.24%	10.29%	8.55%	6.85%	6.26%	5.52%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $440,073K ÷ $4,398,293K
= 10.01%

Century Communities Inc's pretax margin has been showing a generally increasing trend from March 31, 2020, to June 30, 2022, with fluctuations along the way. The pretax margin has improved steadily from 5.52% on March 31, 2020, to a peak of 17.49% on June 30, 2022. This significant increase in profitability indicates the company's ability to efficiently manage costs and generate higher earnings relative to revenue before accounting for taxes.

However, from September 30, 2022, to December 31, 2024, the pretax margin exhibited some volatility, with fluctuations in the range of 8.92% to 10.61%. Although the margin trended downward during this period, it remained relatively stable, indicating a consistent level of profitability for the firm.

Notably, the pretax margin dropped to 9.95% on September 30, 2024, before slightly recovering to 10.01% on December 31, 2024. This decline may warrant further investigation into potential factors affecting profitability during that period.

Overall, Century Communities Inc has demonstrated a strong pretax margin performance, with periods of growth and stability, reflecting the company's ability to effectively manage costs and generate profits before tax implications.