DR Horton Inc (DHI)

Pretax margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	6,265,200	7,591,600	5,340,900	2,976,200	2,125,200
Revenue	US$ in thousands	35,460,400	33,480,000	27,774,200	20,311,100	17,592,900
Pretax margin		17.67%	22.68%	19.23%	14.65%	12.08%

September 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $6,265,200K ÷ $35,460,400K
= 17.67%

To analyze D.R. Horton Inc.'s pretax margin over the past five years, it is evident that the pretax margin has fluctuated. In Sep 2023, the pretax margin decreased to 17.81% from 22.79% in Sep 2022, showing a decline in profitability before accounting for taxes. This decrease may be attributed to various factors such as changes in operating expenses, sales revenue, or cost of sales. Comparing this to Sep 2021, when the pretax margin was 19.29%, there was a decrease in profitability. However, when comparing to Sep 2020 and Sep 2019 with pretax margins of 14.69% and 12.08% respectively, the company has shown an overall improvement in its pretax profitability. This indicates that the company has made advances in its cost control and operational efficiency over the last few years. Overall, it is important to further investigate the factors influencing these fluctuations to gain a comprehensive understanding of the company's financial performance.