LGI Homes (LGIH)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	200,155	371,407	818,034	603,097	436,479
Revenue	US$ in thousands	2,358,580	2,304,460	3,050,150	2,367,930	1,838,150
Gross profit margin		8.49%	16.12%	26.82%	25.47%	23.75%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $200,155K ÷ $2,358,580K
= 8.49%

LGI Homes Inc gross profit margin has shown a fluctuating trend over the past five years. Starting at 23.75% in 2019, it gradually increased to 28.06% in 2022, indicating an improvement in the company's ability to generate profits from its core operations. However, in 2023, the gross profit margin decreased to 22.99%, suggesting a reduction in the percentage of revenue retained after accounting for the cost of goods sold. Despite this slight decline, LGI Homes Inc has maintained a relatively healthy gross profit margin throughout the period, which is a positive indicator of its operational efficiency and profitability. Further analysis of cost structures and revenue streams may help determine the factors influencing the fluctuations in the company's gross profit margin.