PulteGroup Inc (PHM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.86% | 90.87% | 90.35% | 90.77% | 91.89% |
| Operating profit margin | 84.25% | 82.24% | 81.11% | 81.62% | 81.76% |
| Pretax margin | 22.03% | 21.28% | 20.93% | 17.78% | 15.66% |
| Net profit margin | 16.96% | 16.05% | 15.93% | 13.79% | 12.75% |
Based on the provided data, we can analyze the profitability ratios of PulteGroup Inc over the past five years.
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold (COGS). PulteGroup's gross profit margin has been relatively stable, ranging from 90.35% to 91.86% over the years.
- The company has been able to maintain a high level of gross profit margin, indicating efficient management of production costs and pricing strategies.
2. Operating Profit Margin:
- The operating profit margin shows the percentage of revenue that remains after deducting operating expenses.
- PulteGroup's operating profit margin has shown a slight improvement over the years, increasing from 81.11% in 2022 to 84.25% in 2024.
- This improvement suggests that the company has been able to control its operating costs effectively while generating higher operating profits.
3. Pretax Margin:
- The pretax margin reflects the percentage of revenue that remains after accounting for all expenses except taxes.
- PulteGroup's pretax margin has shown a consistent upward trend, from 15.66% in 2020 to 22.03% in 2024.
- This indicates that the company has been able to increase its profitability before accounting for taxes by improving cost efficiency and revenue generation.
4. Net Profit Margin:
- The net profit margin is a key indicator of a company's profitability as it measures the percentage of revenue that remains as net income after all expenses, including taxes.
- PulteGroup's net profit margin has also increased over the years, from 12.75% in 2020 to 16.96% in 2024.
- This improvement indicates that the company has been successful in managing its costs effectively and maximizing its bottom-line profitability.
In conclusion, PulteGroup Inc has shown a positive trend in its profitability ratios over the past five years, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin. These trends suggest that the company has been effectively managing its costs, optimizing its operations, and generating higher profits relative to its revenue.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 88.22% | 82.88% | 90.09% | 86.29% | 73.92% |
| Return on assets (ROA) | 17.76% | 16.18% | 17.69% | 14.58% | 11.53% |
| Return on total capital | 33.05% | 33.22% | 38.59% | 33.52% | 26.38% |
| Return on equity (ROE) | 25.44% | 25.06% | 29.36% | 25.99% | 21.41% |
PulteGroup Inc has shown a consistent improvement in profitability ratios over the years, as evidenced by the increasing trend in key metrics.
- Operating return on assets (Operating ROA) has seen a significant growth from 73.92% in December 2020 to 88.22% in December 2024, indicating the company's effective management in generating operating income relative to its total assets.
- Return on assets (ROA) has also shown a positive trend, increasing from 11.53% in December 2020 to 17.76% by December 2024. This metric reflects the company's ability to generate profits from its assets.
- Return on total capital has exhibited steady growth, with an increase from 26.38% in December 2020 to 33.05% by December 2024. This ratio indicates the company's efficiency in generating returns for both equity and debt holders.
- Return on equity (ROE) has fluctuated slightly but remained relatively stable, ranging from 21.41% in December 2020 to 25.44% in December 2024. ROE reflects the company's ability to generate profits from shareholders' equity investment.
Overall, the improving trend in profitability ratios suggests that PulteGroup Inc has been effectively utilizing its assets, capital, and equity to generate increased returns for its stakeholders over the years.