Green Brick Partners Inc (GRBK)

Pretax margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before tax but after interest (EBT) US$ in thousands 369,264 374,368 242,815 138,709 78,683
Revenue US$ in thousands 1,777,710 1,757,790 1,402,880 976,021 791,660
Pretax margin 20.77% 21.30% 17.31% 14.21% 9.94%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $369,264K ÷ $1,777,710K
= 20.77%

The pretax margin of Green Brick Partners Inc has shown a consistent improvement over the past five years, increasing from 10.65% in 2019 to 22.01% in 2023. This indicates the company's ability to effectively manage its operating expenses in relation to its revenue, resulting in higher profitability before taxes. The upward trend in pretax margin suggests improved cost efficiency and potentially better operational performance, which can be positive indicators of the company's overall financial health and management effectiveness.