TRI Pointe Homes Inc (TPH)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	592,585	467,359	773,212	625,662	373,377
Revenue	US$ in thousands	4,422,670	3,715,200	4,348,530	3,982,240	3,260,450
Pretax margin		13.40%	12.58%	17.78%	15.71%	11.45%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $592,585K ÷ $4,422,670K
= 13.40%

Based on the data provided, TRI Pointe Homes Inc has shown a fluctuating pretax margin over the years:

- As of December 31, 2020, the pretax margin was 11.45%, indicating that the company generated $0.1145 of pre-tax profit for every $1 of revenue.
- By the end of December 31, 2021, the pretax margin improved to 15.71%, reflecting an increase in profitability.
- Subsequently, as of December 31, 2022, the pretax margin further expanded to 17.78%, signifying continued profitability growth.
- However, by the end of December 31, 2023, the pretax margin declined to 12.58%, suggesting a decrease in profitability compared to the previous year.
- Lastly, as of December 31, 2024, the pretax margin slightly rebounded to 13.40%.

Overall, TRI Pointe Homes Inc's pretax margin has displayed some volatility, with notable improvements in 2021 and 2022. However, there was a slight dip in profitability in 2023 before a modest recovery in 2024. This metric is important for assessing the company's operational efficiency and profitability prior to accounting for taxes.