TRI Pointe Homes Inc (TPH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.50% | 90.89% | 89.46% | 22.41% | 19.79% |
| Operating profit margin | 97.37% | 17.17% | 15.19% | 11.24% | 8.23% |
| Pretax margin | 12.43% | 17.63% | 15.71% | 11.45% | 8.79% |
| Net profit margin | 9.25% | 13.25% | 11.78% | 8.66% | 6.72% |
Over the past five years, Tri Pointe Homes Inc. has shown a fluctuating trend in its profitability ratios.
- Gross profit margin: The company's gross profit margin has varied between 19.87% in 2019 to 27.27% in 2022. This ratio indicates how efficiently the company is managing its production costs.
- Operating profit margin: Tri Pointe Homes Inc. has seen its operating profit margin fluctuate between 8.27% in 2019 and 17.73% in 2022. This ratio reflects the company's ability to generate profits from its core operations.
- Pretax margin: The pretax margin has ranged from 8.79% in 2019 to 17.78% in 2022. This ratio shows the company's ability to control operating expenses while generating profits before taxes.
- Net profit margin: The net profit margin has varied between 6.72% in 2019 and 13.25% in 2022. This ratio represents the company's profitability after all expenses, including taxes, have been deducted.
Overall, Tri Pointe Homes Inc. has shown improving profitability ratios over the past five years, with the company achieving higher margins in recent years. However, the fluctuations in these ratios indicate that the company's profitability is subject to various internal and external factors affecting its operations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 73.61% | 15.82% | 13.95% | 9.11% | 6.58% |
| Return on assets (ROA) | 6.99% | 12.20% | 10.82% | 7.02% | 5.37% |
| Return on total capital | 15.34% | 27.07% | 25.56% | 16.72% | 12.40% |
| Return on equity (ROE) | 11.42% | 20.34% | 19.17% | 12.64% | 9.48% |
Tri Pointe Homes Inc.'s profitability ratios show a generally positive trend over the past five years. The Operating Return on Assets (Operating ROA) decreased from 16.33% in 2022 to 8.71% in 2023, indicating a decrease in operating efficiency in generating profits from its assets. However, the ROA remained relatively stable, ranging from 5.37% in 2019 to 12.20% in 2022 and then decreasing to 6.99% in 2023, reflecting the company's ability to generate profits from its total assets.
The Return on Total Capital increased from 7.61% in 2019 to 18.31% in 2022 before decreasing to 9.74% in 2023, showing fluctuations in the company's ability to generate returns from its total capital employed. The Return on Equity (ROE) also showed an upward trend, increasing from 9.48% in 2019 to 20.34% in 2022 and then decreasing slightly to 11.42% in 2023.
Overall, Tri Pointe Homes Inc. has shown strong profitability ratios over the years, with varying levels of returns generated from its assets, capital, and equity. It is essential for the company to closely monitor these ratios to ensure sustainable profitability and efficient utilization of resources in the future.