LGI Homes (LGIH)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	200,155	195,517	207,818	301,738	371,407	561,020	668,732	723,805	818,034	849,646	782,588	686,482	603,097	501,982	483,401	476,739	436,479	397,823	378,507	376,961
Revenue (ttm)	US$ in thousands	2,358,580	2,238,428	2,167,963	2,245,762	2,304,455	2,617,269	2,821,803	2,890,246	3,050,149	3,146,471	2,929,065	2,619,155	2,367,929	2,076,180	2,025,059	2,005,287	1,838,154	1,657,665	1,554,953	1,512,970
Gross profit margin		8.49%	8.73%	9.59%	13.44%	16.12%	21.44%	23.70%	25.04%	26.82%	27.00%	26.72%	26.21%	25.47%	24.18%	23.87%	23.77%	23.75%	24.00%	24.34%	24.92%

December 31, 2023 calculation

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

The gross profit margin of LGI Homes Inc has shown a declining trend over the past four quarters, decreasing from 28.06% in Q4 2022 to 22.99% in Q4 2023. This downward trend indicates a decrease in the percentage of revenue retained after deducting the cost of goods sold. The company experienced its lowest gross profit margin in Q3 2022 at 22.36%, which improved slightly in the subsequent quarters but has not yet returned to previous levels. This trend may suggest challenges in managing production costs or pricing strategies, impacting the company's profitability. Further assessment of the factors influencing the cost of goods sold and revenue generation would be necessary to provide a more in-depth analysis of LGI Homes Inc's gross profit margin performance.