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.