PulteGroup Inc (PHM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.87% | 90.35% | 90.77% | 91.89% | 89.93% |
| Operating profit margin | 82.24% | 81.11% | 81.62% | 81.76% | 78.91% |
| Pretax margin | 21.28% | 20.93% | 17.78% | 15.66% | 13.12% |
| Net profit margin | 16.05% | 15.93% | 13.79% | 12.75% | 9.95% |
PulteGroup Inc's profitability ratios have shown a positive trend over the past five years, indicating an improvement in the company's financial performance.
The gross profit margin has increased steadily from 23.47% in 2019 to 29.38% in 2023, reflecting the company's ability to effectively manage its production costs and generate higher profits from its operations.
Similarly, the operating profit margin has also shown a consistent improvement, reaching 21.15% in 2023 from 13.11% in 2019. This indicates that the company has been efficient in controlling its operating expenses and increasing its operational efficiency.
The pretax margin has demonstrated a similar positive trend, rising from 13.12% in 2019 to 21.48% in 2023. This indicates that the company has been successful in managing its tax obligations and generating higher profits before taxes.
Finally, the net profit margin has shown significant improvement as well, increasing from 9.85% in 2019 to 16.14% in 2023. This indicates that the company has been effective in managing its overall expenses, including interest and taxes, and increasing its profitability for its shareholders.
Overall, PulteGroup Inc's profitability ratios indicate a strong financial performance and effective management of its costs and expenses over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 82.88% | 90.09% | 86.29% | 73.92% | 75.21% |
| Return on assets (ROA) | 16.18% | 17.69% | 14.58% | 11.53% | 9.49% |
| Return on total capital | 33.22% | 38.59% | 33.52% | 26.38% | 24.55% |
| Return on equity (ROE) | 25.06% | 29.36% | 25.99% | 21.41% | 18.63% |
PulteGroup Inc's profitability ratios have shown a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has generally increased from 12.49% in 2019 to 21.11% in 2023. This indicates that the company has been efficient in generating operating income relative to its total assets.
2. Return on assets (ROA) has also shown an upward trend over the period, rising from 9.39% in 2019 to 16.12% in 2023. This metric reflects the company's ability to generate profits from its assets, including both operating and non-operating activities.
3. Return on total capital has significantly improved from 15.57% in 2019 to 26.48% in 2023. This ratio measures how efficiently the company is using all of its capital to generate profits, including debt and equity.
4. Return on equity (ROE) has also exhibited a positive trajectory, increasing from 18.44% in 2019 to 24.97% in 2023. ROE shows how well the company is utilizing shareholder equity to generate profits.
Overall, the consistent improvement in these profitability ratios indicates that PulteGroup Inc has been successful in increasing its efficiency in generating profits from its assets, capital, and equity over the years.