LGI Homes (LGIH)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	233,255	390,107	547,698	364,710	227,538
Revenue	US$ in thousands	2,358,580	2,304,460	3,050,150	2,367,930	1,838,150
Operating profit margin		9.89%	16.93%	17.96%	15.40%	12.38%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $233,255K ÷ $2,358,580K
= 9.89%

The operating profit margin of LGI Homes Inc has shown fluctuations over the past five years. In 2019, the operating profit margin was 12.38%, which then increased to 15.40% in 2020. Subsequently, there was a further increase to 17.96% in 2021. However, there was a decline in the operating profit margin to 16.93% in 2022 and a further decrease to 9.89% in 2023.

These fluctuations in the operating profit margin indicate changes in the company's profitability relative to its revenue and operating costs over the years. A higher operating profit margin signifies that the company is able to control its operating expenses effectively and generate more profit from its core business activities. Conversely, a lower operating profit margin may indicate challenges in managing costs or generating sufficient revenue to cover expenses.

Further analysis and comparison with industry averages or peers may provide additional insights into LGI Homes Inc's operational efficiency and financial performance.