LGI Homes (LGIH)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 196,071 | 199,227 | 326,567 | 429,645 | 323,895 |
| Revenue | US$ in thousands | 2,202,600 | 2,358,580 | 2,304,460 | 3,050,150 | 2,367,930 |
| Net profit margin | 8.90% | 8.45% | 14.17% | 14.09% | 13.68% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $196,071K ÷ $2,202,600K
= 8.90%
To analyze LGI Homes' net profit margin over the years, we observe the following trend. The net profit margin increased steadily from 13.68% in December 2020 to 14.17% in December 2022, reflecting improving profitability. However, there was a notable decline in December 2023 to 8.45%, followed by a slight increase to 8.90% in December 2024.
This fluctuation in net profit margin indicates a potential challenge in maintaining consistent profitability for LGI Homes during these periods. Further investigation into the company's cost structure, revenue streams, and operational efficiency may provide insights into the factors driving these changes in net profit margin.
Peer comparison
Dec 31, 2024