LGI Homes (LGIH)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	199,227	326,567	429,645	323,895	178,608
Revenue	US$ in thousands	2,358,580	2,304,460	3,050,150	2,367,930	1,838,150
Net profit margin		8.45%	14.17%	14.09%	13.68%	9.72%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $199,227K ÷ $2,358,580K
= 8.45%

LGI Homes Inc's net profit margin has shown some fluctuations over the past five years. The net profit margin was at its lowest in 2019 at 9.72% and then increased in the following years, reaching a peak of 14.17% in 2022. However, in 2023, the net profit margin decreased to 8.45%. This indicates a decrease in the company's profitability relative to its revenue in the most recent year.

It is essential for LGI Homes Inc to closely monitor its cost management and revenue generation strategies to maintain and improve its profitability in the future. By analyzing the components of its cost structure and revenue streams, the company can identify areas for improvement and implement strategies to enhance its net profit margin.