DR Horton Inc (DHI)

Pretax margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	6,235,100	6,265,200	7,591,600	5,340,900	2,976,200
Revenue	US$ in thousands	36,801,400	35,460,400	33,480,000	27,774,200	20,311,100
Pretax margin		16.94%	17.67%	22.68%	19.23%	14.65%

September 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $6,235,100K ÷ $36,801,400K
= 16.94%

The pre-tax margin of DR Horton Inc has displayed variability over the past five years. The pretax margin indicates the percentage of each dollar in revenue that remains after deducting operating expenses but before accounting for taxes.

In Sep 2020, the pre-tax margin was at 14.65%, which then showed an improvement in Sep 2021 to 19.23%. This increase suggests better cost management or increased revenue generation relative to the previous year.

However, in Sep 2022, there was a significant jump in the pre-tax margin to 22.68%, indicating a more efficient operation in terms of generating profits before tax relative to revenue. This may have resulted from enhanced operational efficiencies, higher revenue, or lower operating expenses.

Subsequently, in Sep 2023, there was a slight decrease in the pre-tax margin to 17.67%, which might indicate a reversal of the operational improvements seen in the previous year.

In Sep 2024, the pre-tax margin further decreased to 16.94%, suggesting a potential challenge in maintaining profitability levels due to factors like increasing operating expenses, lower revenues, or other cost pressures.

Overall, the trend in DR Horton Inc's pre-tax margin shows fluctuations over the past five years, highlighting the company's ability to manage costs, generate revenues, and optimize profitability before accounting for taxes.