M/I Homes Inc (MHO)

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	607,277	635,207	509,114	310,043	166,025
Revenue	US$ in thousands	4,033,500	4,131,390	3,745,890	3,046,140	2,500,290
Pretax margin		15.06%	15.38%	13.59%	10.18%	6.64%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $607,277K ÷ $4,033,500K
= 15.06%

The pretax margin of MI Homes Inc. has shown a consistent upward trend over the past five years, increasing from 6.64% in 2019 to 15.06% in 2023. This indicates an improvement in the company's ability to generate operating income relative to its total revenue before accounting for income taxes.

The steady increase in pretax margin suggests more efficient cost management, enhanced operational performance, or improved revenue generation strategies. These factors have allowed the company to retain a higher proportion of each dollar of revenue as operating income before tax expenses.

Moreover, the double-digit pretax margins in the most recent years indicate strong profitability and financial health for MI Homes Inc. The company's ability to maintain a pretax margin above 10% since 2020 signifies its resilience and competitive positioning in the homebuilding industry.

Overall, the upward trajectory of MI Homes Inc.'s pretax margin reflects positive financial performance and indicates effective management of costs and operating efficiency over the analyzed period.