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.
Peer comparison
Dec 31, 2023