Taylor Morn Home (TMHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.04% | 25.44% | 20.63% | 17.04% | 17.31% |
| Operating profit margin | 14.62% | 16.93% | 11.45% | 7.63% | 6.57% |
| Pretax margin | 13.71% | 16.89% | 11.25% | 5.19% | 6.76% |
| Net profit margin | 10.37% | 12.80% | 8.84% | 3.97% | 5.35% |
Taylor Morrison Home Corp.'s profitability ratios have shown an improving trend over the last five years, indicating enhanced efficiency and effectiveness in generating profits. The gross profit margin has fluctuated but generally increased from 17.31% in 2019 to 24.04% in 2023, suggesting better control over production costs and pricing strategies.
The operating profit margin has also exhibited a positive trend, rising from 7.01% in 2019 to 14.62% in 2023. This signifies efficient management of operating expenses and improved operational performance. Similarly, the pretax margin has increased steadily, reaching 13.72% in 2023, indicating effective control over both operating and non-operating expenses.
Taylor Morrison Home Corp.'s net profit margin has shown significant improvement, reflecting the company's ability to generate profits after accounting for all expenses, including taxes. The net profit margin has more than doubled from 5.35% in 2019 to 10.37% in 2023, indicating enhanced profitability and overall financial health.
Overall, the consistent improvement in profitability ratios demonstrates Taylor Morrison Home Corp.'s commitment to enhancing operational efficiency, cost management, and profitability, which can be seen as positive indicators for investors and stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.50% | 16.44% | 9.84% | 6.04% | 5.96% |
| Return on assets (ROA) | 8.87% | 12.43% | 7.60% | 3.15% | 4.85% |
| Return on total capital | 19.20% | 30.05% | 21.51% | 9.02% | 12.74% |
| Return on equity (ROE) | 14.47% | 22.74% | 16.89% | 6.95% | 10.03% |
Taylor Morrison Home Corp. has shown a consistent improvement in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has increased steadily from 6.36% in 2019 to 12.50% in 2023, indicating a strong operational performance in generating profits from its assets.
Similarly, the return on assets (ROA) has also shown an upward trend, reaching 8.87% in 2023 from 4.85% in 2019. This metric reflects the company's ability to generate profits relative to its total assets, and the increasing ratio suggests improved asset utilization and efficiency.
The return on total capital has followed a similar pattern, increasing from 7.67% in 2019 to 14.91% in 2023. This ratio measures the company's profitability in relation to both debt and equity financing, indicating that Taylor Morrison Home Corp. has been successful in generating returns for its total invested capital.
Lastly, the return on equity (ROE) has also displayed a positive trajectory, rising from 10.03% in 2019 to 14.47% in 2023. This ratio signifies the return generated on shareholders' equity, reflecting the company's ability to create value for its shareholders.
Overall, the improving profitability ratios of Taylor Morrison Home Corp. indicate strong financial performance and effective management of its assets and capital structure over the years.