LGI Homes (LGIH)

Operating 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
Operating income (ttm)	US$ in thousands	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	227,538	198,970	186,595	190,316
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
Operating profit margin		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%	12.38%	12.00%	12.00%	12.58%

December 31, 2023 calculation

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

The operating profit margin of LGI Homes Inc has exhibited a declining trend over the past quarters, starting at 18.03% in Q1 2022 and decreasing to 9.89% in Q4 2023. This downward trajectory signifies a potential erosion in the company's ability to generate profit from its core operations.

The highest operating profit margin was observed in Q1 2023 at 14.27%, but it declined in subsequent quarters. It is important to note the significant drop in profitability from Q4 2022 at 16.93% to Q1 2023 at 14.27%, followed by a continuous decline over the next quarters.

This trend could indicate various factors impacting the company's profitability, such as increasing operating expenses or a slowdown in revenue growth relative to costs. As the operating profit margin is a key metric for assessing operational efficiency, LGI Homes Inc may need to address underlying issues to improve profitability and ensure sustainable business performance.