LGI Homes (LGIH)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 533,288 542,187 646,600 818,034 603,097
Revenue US$ in thousands 2,202,600 2,358,580 2,304,460 3,050,150 2,367,930
Gross profit margin 24.21% 22.99% 28.06% 26.82% 25.47%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $533,288K ÷ $2,202,600K
= 24.21%

LGI Homes has shown a fluctuation in its gross profit margin over the past five years. The trend indicates an overall increasing pattern from 25.47% in December 31, 2020, to 28.06% in December 31, 2022. However, there was a notable decline in December 31, 2023, where the gross profit margin dropped to 22.99%, followed by a slight recovery to 24.21% by December 31, 2024. This suggests that while LGI Homes has made efforts to improve its gross profit margin over the years, there may have been certain challenges or factors affecting profitability in 2023. Further analysis of the company's cost structure and revenue streams may be necessary to understand the dynamics behind these fluctuations.