DR Horton Inc (DHI)

Pretax margin

		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	Dec 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	6,204,000	6,544,400	6,525,900	6,246,900	6,265,300	6,312,200	6,716,700	7,356,100	7,591,600	7,262,200	6,505,000	5,803,200	5,341,000	4,674,900	4,040,500	3,485,000	2,976,200	2,583,800	2,431,500	2,271,200
Revenue (ttm)	US$ in thousands	36,801,500	37,302,900	37,062,800	35,928,500	35,460,300	34,595,700	33,658,200	33,684,300	33,479,900	31,949,800	30,446,300	28,894,200	27,774,200	26,065,300	24,170,700	22,223,800	20,311,100	18,949,600	18,465,900	18,094,600
Pretax margin		16.86%	17.54%	17.61%	17.39%	17.67%	18.25%	19.96%	21.84%	22.68%	22.73%	21.37%	20.08%	19.23%	17.94%	16.72%	15.68%	14.65%	13.64%	13.17%	12.55%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $6,204,000K ÷ $36,801,500K
= 16.86%

DR Horton Inc's pretax margin has shown a fluctuating trend over the past eight quarters. The pretax margin indicates the company's profitability before taxes as a percentage of total revenue.

The pretax margin has generally been on a downward trajectory since December 2022, declining from 21.84% to 16.86% as of September 2024. This decreasing trend suggests that the company's profitability before taxes has been under pressure in recent quarters.

Despite the overall decline, it's worth noting that DR Horton Inc's pretax margin remained above 15% over the past eight quarters, indicating a consistent level of profitability. However, the recent decrease in pretax margin may raise concerns about the company's ability to maintain its profitability levels in the future.

Further analysis and comparison with industry peers could provide additional insights into the factors driving the fluctuations in DR Horton Inc's pretax margin and help assess the company's financial performance in a broader context.