LGI Homes (LGIH)

Net 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
Net income (ttm)	US$ in thousands	196,071	197,290	194,757	189,318	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
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
Net profit margin		7.84%	7.73%	7.73%	7.39%	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%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $196,071K ÷ $2,502,048K
= 7.84%

LGI Homes' net profit margin, which represents the company's profitability by indicating how much of each dollar of revenue translates into profit, has shown fluctuations over time based on the provided data.

From March 31, 2020, to June 30, 2022, the net profit margin improved steadily from 10.13% to 14.67%, reflecting the company's ability to effectively control costs and generate higher profits relative to its revenue.

However, starting from March 31, 2023, the net profit margin began to decline, reaching its lowest point of 7.39% on March 31, 2024. This downward trend indicates potential challenges in maintaining profitability, which may be attributed to factors such as increased expenses or pricing pressures in the market.

It is important for LGI Homes to monitor its net profit margin closely and implement strategies to ensure sustainable profitability in the face of changing market conditions and operational challenges.