LGI Homes (LGIH)

Net 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
Net income (ttm)	US$ in thousands	199,227	181,253	204,601	274,843	326,567	403,755	413,915	408,673	429,645	454,770	443,224	380,714	323,895	252,337	212,682	203,113	178,608	156,391	144,765	146,318
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
Net profit margin		8.45%	8.10%	9.44%	12.24%	14.17%	15.43%	14.67%	14.14%	14.09%	14.45%	15.13%	14.54%	13.68%	12.15%	10.50%	10.13%	9.72%	9.43%	9.31%	9.67%

December 31, 2023 calculation

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

The net profit margin of LGI Homes Inc has exhibited a declining trend over the past quarters. In Q4 2023, the net profit margin stood at 8.45%, a decrease from the previous quarter's 8.10%. This marks the lowest net profit margin in the provided data. The company experienced a notable decrease in profitability compared to Q1 2023 when the net profit margin was 12.24%. Moreover, the current net profit margin is substantially lower than the figures seen in the same quarter of the previous year, Q4 2022, when it was 14.17%. Overall, the declining trend in net profit margin suggests that LGI Homes Inc may be facing challenges in maintaining profitability and operational efficiency in its business operations.