Green Brick Partners Inc (GRBK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.52% | 30.84% | 29.75% | 25.81% | 24.04% |
| Operating profit margin | 22.72% | 19.98% | 20.29% | 16.04% | 12.21% |
| Pretax margin | 24.39% | 22.01% | 22.55% | 18.32% | 14.63% |
| Net profit margin | 18.18% | 16.01% | 16.61% | 13.56% | 11.65% |
Based on the provided data for Green Brick Partners Inc, the company has demonstrated a positive trend in its profitability ratios over the years.
1. Gross Profit Margin: The gross profit margin has shown consistent growth, increasing from 24.04% in December 31, 2020, to 33.52% in December 31, 2024. This indicates efficient cost management and potential pricing power.
2. Operating Profit Margin: The operating profit margin has also seen a steady improvement, rising from 12.21% in December 31, 2020, to 22.72% in December 31, 2024. This suggests effective control over operating expenses and higher operational efficiency.
3. Pretax Margin: The pretax margin has shown a similar positive trend, increasing from 14.63% in December 31, 2020, to 24.39% in December 31, 2024. This signifies improved overall profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin has also exhibited growth, moving from 11.65% in December 31, 2020, to 18.18% in December 31, 2024. This indicates that the company is generating higher profits after accounting for all expenses, including taxes.
In conclusion, Green Brick Partners Inc has made significant progress in enhancing its profitability ratios over the years, reflecting improved operational performance and financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.20% | 18.65% | 21.54% | 15.83% | 12.05% |
| Return on assets (ROA) | 16.96% | 14.94% | 17.63% | 13.38% | 11.50% |
| Return on total capital | 0.00% | 27.31% | 33.81% | 26.05% | 19.13% |
| Return on equity (ROE) | 23.48% | 21.88% | 27.49% | 21.75% | 17.76% |
Green Brick Partners Inc has shown a consistent improvement in its profitability ratios over the years.
- The Operating Return on Assets (Operating ROA) has increased from 12.05% in 2020 to 21.20% in 2024, indicating that the company is generating more operating income from its assets.
- Return on Assets (ROA) has also seen an upward trend, rising from 11.50% in 2020 to 16.96% in 2024, showing that the company's ability to generate profits from its total assets has improved.
- Return on Total Capital peaked in 2022 at 33.81%, but dropped to 0.00% in 2024. This significant drop might indicate a change in the company's capital structure or investment decisions.
- Return on Equity (ROE) has been fluctuating but generally increasing, reaching 23.48% in 2024. This shows that the company is effectively utilizing shareholders' equity to generate profits.
Overall, Green Brick Partners Inc has shown strong profitability performance, with a focus on maximizing returns from its assets and equity, though the sudden drop in Return on Total Capital in 2024 may require further analysis and scrutiny.