Green Brick Partners Inc (GRBK)
Pretax margin
Dec 31, 2024 | 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 | ||
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Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 511,880 | 475,629 | 454,739 | 419,774 | 391,313 | 367,424 | 366,934 | 401,004 | 396,465 | 401,100 | 368,662 | 304,357 | 256,986 | 212,346 | 193,111 | 155,319 | 142,813 | 127,446 | 106,495 | 91,766 |
Revenue (ttm) | US$ in thousands | 2,098,943 | 1,982,011 | 1,877,329 | 1,772,987 | 1,777,710 | 1,758,417 | 1,747,383 | 1,816,238 | 1,757,793 | 1,778,955 | 1,713,351 | 1,562,013 | 1,402,876 | 1,204,725 | 1,138,206 | 997,233 | 976,021 | 952,043 | 885,626 | 836,299 |
Pretax margin | 24.39% | 24.00% | 24.22% | 23.68% | 22.01% | 20.90% | 21.00% | 22.08% | 22.55% | 22.55% | 21.52% | 19.48% | 18.32% | 17.63% | 16.97% | 15.57% | 14.63% | 13.39% | 12.02% | 10.97% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $511,880K ÷ $2,098,943K
= 24.39%
The pretax margin of Green Brick Partners Inc has shown a consistent increasing trend over the last few years, indicating improved profitability and cost management. From 10.97% in March 2020, the pretax margin has steadily climbed to 24.39% by December 2024. This demonstrates the company's ability to effectively control operating expenses and generate higher pre-tax profits relative to its revenue.
The gradual improvement in pretax margin suggests that Green Brick Partners Inc has been able to enhance operational efficiency, optimize its cost structure, and potentially benefit from economies of scale. The sustained growth in pretax margin is a positive sign for investors as it reflects the company's capacity to generate higher earnings before taxes for each dollar of revenue.
However, it is important to monitor future changes in pretax margin to assess the company's continued ability to maintain or improve its profitability levels. Factors such as changes in market conditions, competition, or cost pressures could impact the pretax margin in the future and should be considered in the overall analysis of Green Brick Partners Inc's financial performance.
Peer comparison
Dec 31, 2024