LGI Homes (LGIH)

Pretax margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 258,913 260,377 257,974 252,500 261,754 240,059 259,311 350,914 418,116 514,647 532,940 519,049 542,775 565,939 516,760 436,236 367,849 286,172 273,089 265,027
Revenue (ttm) US$ in thousands 2,502,048 2,553,066 2,518,751 2,561,524 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
Pretax margin 10.35% 10.20% 10.24% 9.86% 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%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $258,913K ÷ $2,502,048K
= 10.35%

The pretax margin of LGI Homes has shown a generally increasing trend from March 31, 2020, to June 30, 2022, reaching a peak of 18.89%. However, starting from September 30, 2022, the pretax margin began to decline, dropping to 10.20% by September 30, 2024. This suggests a potential decrease in profitability before a slight recovery in the most recent quarter reported. It is essential for LGI Homes to closely monitor and manage its operational efficiency and cost structure to sustain and improve its pretax margin in the future.