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
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.