LGI Homes (LGIH)

Operating 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
Operating income (ttm)	US$ in thousands	212,146	226,401	228,372	225,937	233,255	214,217	226,518	320,438	390,107	490,613	533,974	520,975	547,698	571,945	511,448	433,275	364,710	283,150	269,734	260,341
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
Operating profit margin		8.48%	8.87%	9.07%	8.82%	9.89%	9.57%	10.45%	14.27%	16.93%	18.75%	18.92%	18.03%	17.96%	18.18%	17.46%	16.54%	15.40%	13.64%	13.32%	12.98%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $212,146K ÷ $2,502,048K
= 8.48%

LGI Homes' operating profit margin has shown fluctuation over the analyzed period from March 31, 2020, to December 31, 2024. The operating profit margin started at 12.98% in March 2020 and gradually increased to a peak of 18.92% in June 2022 before experiencing a decline.

There was a noticeable decrease in the operating profit margin in the subsequent quarters, with a significant drop to 8.48% by December 31, 2024. This downward trend indicates potential challenges in maintaining profitability and operational efficiency during this period.

Overall, LGI Homes' operating profit margin fluctuated over the years, with both increases and decreases. It is important for the company to closely monitor and address the factors influencing these fluctuations to sustain and improve its profitability performance in the future.