TRI Pointe Homes Inc (TPH)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	461,824	554,282	651,106	751,229	766,840	691,705	674,147	648,962	625,661	583,102	508,538	426,075	373,377	370,258	351,973	312,696	271,087	254,685	253,596	303,018
Revenue (ttm)	US$ in thousands	3,715,206	3,978,306	4,211,590	4,391,951	4,348,534	4,035,744	3,997,134	3,997,504	3,982,226	3,833,046	3,632,320	3,384,366	3,260,450	3,340,890	3,256,821	3,185,429	3,083,011	3,074,441	3,101,117	3,173,706
Pretax margin		12.43%	13.93%	15.46%	17.10%	17.63%	17.14%	16.87%	16.23%	15.71%	15.21%	14.00%	12.59%	11.45%	11.08%	10.81%	9.82%	8.79%	8.28%	8.18%	9.55%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $461,824K ÷ $3,715,206K
= 12.43%

Tri Pointe Homes Inc.'s pretax margin has shown a general downward trend over the past eight quarters. In Q4 2023, the pretax margin decreased to 12.58%, representing a decline compared to the previous quarter. This indicates that for every dollar of revenue generated in Q4 2023, the company's profit before taxes was 12.58 cents.

While the pretax margin has fluctuated over the quarters, the overall trend suggests a gradual decrease in profitability before taxes. It is important for the company to monitor and address the factors contributing to this trend to ensure sustained financial health and operational efficiency.