LGI Homes (LGIH)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	261,754	418,116	542,775	367,849	231,832
Revenue	US$ in thousands	2,358,580	2,304,460	3,050,150	2,367,930	1,838,150
Pretax margin		11.10%	18.14%	17.80%	15.53%	12.61%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $261,754K ÷ $2,358,580K
= 11.10%

The pretax margin of LGI Homes Inc has varied over the past five years, ranging from 12.61% in 2019 to 18.14% in 2022. The company's pretax margin for the most recent year, December 31, 2023, stands at 11.10%. This indicates the percentage of each dollar of revenue that the company retains as pre-tax profit before accounting for taxes and other expenses. The decline in the pretax margin from the previous years suggests that the company's profitability may have decreased in 2023 compared to 2022. It is essential for LGI Homes Inc to monitor and manage its expenses effectively to improve its pretax margin in the future.