LGI Homes (LGIH)

Gross profit 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
Gross profit (ttm)	US$ in thousands	832,738	847,856	843,169	834,222	542,187	500,593	497,587	587,009	646,600	757,282	803,772	786,492	818,034	849,646	782,588	686,482	603,097	501,982	483,401	476,739
Revenue (ttm)	US$ in thousands	2,502,048	2,553,066	2,518,751	2,561,524	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
Gross profit margin		33.28%	33.21%	33.48%	32.57%	22.99%	22.36%	22.95%	26.14%	28.06%	28.93%	28.48%	27.21%	26.82%	27.00%	26.72%	26.21%	25.47%	24.18%	23.87%	23.77%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $832,738K ÷ $2,502,048K
= 33.28%

The gross profit margin of LGI Homes has shown fluctuations over the past years, ranging from a low of 22.36% in September 2023 to a high of 33.48% in June 2024. The trend indicates that the company's profitability has improved since 2022, with the margin steadily increasing until June 2024. The highest point was achieved in the second quarter of 2024, at 33.48%. However, there was a slight dip in the margin in December 2024, settling at 33.28%. Overall, the increasing trend in the gross profit margin indicates that LGI Homes has been effectively managing its costs and generating higher profits relative to its revenues in recent periods. This is a positive signal for the company's financial health and operational efficiency, demonstrating its ability to effectively control costs and increase profitability over time.