TRI Pointe Homes Inc (TPH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.21% | 22.73% | 26.69% | 24.91% | 22.33% |
| Operating profit margin | 12.49% | 11.90% | 17.17% | 15.19% | 11.24% |
| Pretax margin | 13.40% | 12.58% | 17.78% | 15.71% | 11.45% |
| Net profit margin | 10.36% | 9.25% | 13.25% | 11.78% | 8.66% |
TRI Pointe Homes Inc has shown a generally positive trend in its profitability ratios over the years. The gross profit margin has been increasing steadily from 22.33% in December 2020 to 26.69% in December 2022, highlighting the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin also improved, rising from 11.24% in December 2020 to 17.17% in December 2022. This indicates that TRI Pointe Homes Inc has effectively managed its operating expenses to enhance profitability.
The pretax margin, which shows the company's profitability before taxes, exhibited a positive trajectory, increasing from 11.45% in December 2020 to 17.78% in December 2022. This suggests that TRI Pointe Homes Inc has been successful in maximizing its earnings potential before considering tax implications.
Lastly, the net profit margin, which reflects the company's profitability after all expenses have been deducted, improved from 8.66% in December 2020 to 13.25% in December 2022. Although there was a slight dip in 2023, the net profit margin remained relatively strong at 10.36% in December 2024.
Overall, TRI Pointe Homes Inc's profitability ratios demonstrate a positive trend, indicating efficient cost management and effective revenue generation strategies that have led to improved profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.30% | 9.00% | 15.82% | 13.95% | 9.11% |
| Return on assets (ROA) | 9.36% | 6.99% | 12.20% | 10.82% | 7.02% |
| Return on total capital | 17.29% | 14.22% | 27.52% | 26.40% | 17.55% |
| Return on equity (ROE) | 13.73% | 11.42% | 20.34% | 19.17% | 12.64% |
TRI Pointe Homes Inc's profitability ratios show a positive trend over the years, indicating efficient management of assets and capital. The Operating return on assets (Operating ROA) improved from 9.11% in December 2020 to 15.82% in December 2022 before moderating to 11.30% in December 2024. This suggests the company generated $0.1182, $0.1582, and $0.1130 in operating income for every dollar of assets in those years, respectively.
Similarly, the Return on assets (ROA) increased from 7.02% in December 2020 to 12.20% in December 2022, reflecting profitability growth relative to total assets. The Return on total capital rose from 17.55% in December 2020 to 27.52% in December 2022, highlighting the company's ability to generate returns for both equity and debt holders.
Moreover, the Return on equity (ROE) climbed from 12.64% in December 2020 to 20.34% in December 2022, indicating the company's ability to create value for shareholders. The ratios showed slight declines in 2023 and 2024 but remained at healthy levels. Overall, the profitability ratios of TRI Pointe Homes Inc demonstrate a positive performance and efficient utilization of resources during the period analyzed.