LGI Homes (LGIH)
Pretax margin
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Earnings before tax but after interest (EBT) | US$ in thousands | 258,913 | 261,754 | 418,116 | 542,775 | 367,849 |
Revenue | US$ in thousands | 2,202,600 | 2,358,580 | 2,304,460 | 3,050,150 | 2,367,930 |
Pretax margin | 11.75% | 11.10% | 18.14% | 17.80% | 15.53% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $258,913K ÷ $2,202,600K
= 11.75%
LGI Homes' pretax margin has shown some fluctuation over the years, ranging from a high of 18.14% on December 31, 2022, to a low of 11.10% on December 31, 2023. The company's pretax margin indicates the proportion of each dollar of revenue that translates into pre-tax profit before other expenses are accounted for.
Despite the variability in pretax margin, LGI Homes has generally maintained a healthy level of profitability during the period under review. It is important for the company to closely monitor and manage its cost structure to sustain and potentially improve its pretax margin in the future. fluctuations in the pretax margin may be influenced by various factors such as changes in revenue, operating expenses, and other non-operating items.
Peer comparison
Dec 31, 2024