LGI Homes (LGIH)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	261,754	240,059	259,311	350,914	418,116	514,647	532,940	519,049	542,775	565,939	516,760	436,236	367,849	286,172	273,089	265,027	231,832	203,170	187,429	189,565
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
Pretax margin		11.10%	10.72%	11.96%	15.63%	18.14%	19.66%	18.89%	17.96%	17.80%	17.99%	17.64%	16.66%	15.53%	13.78%	13.49%	13.22%	12.61%	12.26%	12.05%	12.53%

December 31, 2023 calculation

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

The pretax margin of LGI Homes Inc has shown a declining trend over the past eight quarters, decreasing from 18.14% in Q4 2022 to 11.10% in Q4 2023. The margins remained above 10% in each quarter, indicating a consistent level of profitability before taxes. However, the decreasing trend may suggest potential challenges in controlling costs or increasing operating expenses relative to revenues. Further analysis would be helpful to understand the factors contributing to the fluctuations in pretax margin over time.