David Auld
President & Chief Executive Officer at D.R. Horton
Thank you, Jessica. And good morning. We are also joined on this call by Mike Murray and Paul Romanowski, our Executive Vice President and Co-Chief Operating Officers and Bill Wheat, our Executive Vice President and Chief Financial Officer. The D.R. Horton team finished the year with a solid fourth quarter which included a 20% increase in consolidated pretax income to $2.1 billion and a 19% increase in revenues to $9.6 billion.
Our pretax profit margin for the quarter improved 10 basis points to 21.4% and our earnings per diluted share increased 26% to $4.67. For the year, consolidated pretax income increased 42% to $7.6 billion on $33.5 billion of revenue which increased 21%. Our pretax profit margin for the year improved 350 basis points to 22.8% and our earnings per diluted share increased 45% to $16.51. We closed a record of 83,518 this year in our whole building and single-family rental operations. And our homebuilding SG&A as a percentage of revenues of 6.8% was an all-time low. Our home many return on inventory for. the year was 42.8% and our consolidated return on the equity was 34.5%. Our strong financial performance during a year of significant challenges and volatility reflects the strength of our experienced teams, industry-leading market share, broad geographic footprint and diverse product offerings.
Our homebuilding cash flow from operations for 2022 was $1.9 billion. Over the past 5 years, we have generated $7.5 billion of cash flow from homebuilding operations while growing our consolidated revenues by 138% and our earnings per share by 503%. During this time, we also more than doubled our book value per share, consistently kept our homebuilding leverage under 20% and increased our homebuilding liquidity by $1.8 billion, all while significantly increasing our returns on inventory and equity. During most of the year, demand for our homes was strong. In June, we began to see a moderation in housing demand that has continued and accelerated through today. The rapid rise in mortgage rates, coupled with high inflation and general economic uncertainty, have made many buyers pause in their home buying decision or choose to not move forward with their home purchase. However, the supply of both new and resell homes at affordable price points remains limited and the demographics supporting housing demand remained favorable.
The uncertainty of this market transition may persist for some time and could get more challenging if mortgage rates continue increasing. However, we are well positioned to meet changing market conditions with our experienced teams, affordable product offerings, flexible lot supply and great trade and supplier relationships. Our strong balance sheet, liquidity and low leverage provide us financial flexibility.
We will continue to focus on turning our inventory and managing our product offerings, incentives, old pricing, sales pace and inventory levels to beat the market, optimize returns, increase market share and generate increased cash flow from our homebuilding operations.
Mike?