Century Communities Inc (CCS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.15 | 0.16 | 0.16 | 28.66 | 0.15 |
| Receivables turnover | — | 9.11 | 8.53 | 1,298.76 | 974.60 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 150.85 | 7.20 | 100.64 | 17.57 | — |
Inventory turnover measures how efficiently a company manages its inventory. For Century Communities Inc, the inventory turnover has been fluctuating over the past five years, with a slight decrease from 1.29 in 2021 to 0.96 in 2023. A lower inventory turnover may indicate potential issues with inventory management or declining sales activity.
Receivables turnover reflects how efficiently the company collects its outstanding receivables. Century Communities Inc has shown a decreasing trend in receivables turnover, with a significant drop from 145.14 in 2020 to 48.45 in 2023. This may suggest the company is taking longer to collect payments from customers, potentially impacting its cash flows and liquidity.
Payables turnover measures how quickly the company pays its suppliers. Century Communities Inc has experienced fluctuations in payables turnover, with a decline from 37.41 in 2021 to 19.62 in 2023. A lower payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which may affect its relationships with vendors or liquidity position.
Working capital turnover assesses how effectively the company utilizes its working capital to generate sales. Century Communities Inc has shown a relatively stable working capital turnover over the years, ranging from 1.03 in 2023 to 1.41 in 2021. A higher working capital turnover ratio indicates efficient utilization of resources to drive revenue growth.
Overall, Century Communities Inc should closely monitor its inventory turnover, receivables turnover, and payables turnover ratios to improve operational efficiency, manage cash flows, and enhance working capital utilization.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2,451.25 | 2,343.40 | 2,301.19 | 12.74 | 2,368.64 |
| Days of sales outstanding (DSO) | days | — | 40.09 | 42.78 | 0.28 | 0.37 |
| Number of days of payables | days | — | — | — | — | — |
1. Days of inventory on hand (DOH):
- The days of inventory on hand ratio measures how many days, on average, a company holds its inventory before selling it.
- Century Communities Inc's DOH has been fluctuating over the past five years, ranging from a low of 276.76 days in 2020 to a high of 381.09 days in 2023.
- A higher DOH ratio indicates that the company may be holding excess inventory, which ties up capital and may lead to increased holding costs.
2. Days of sales outstanding (DSO):
- The days of sales outstanding ratio represents the average number of days it takes for a company to collect payment after making a sale.
- Century Communities Inc's DSO has shown a general increasing trend over the years, with a significant rise from 2.51 days in 2020 to 7.53 days in 2023.
- A higher DSO could suggest difficulties in collecting receivables promptly, which may impact the company's cash flow and liquidity position.
3. Number of days of payables:
- The number of days of payables ratio reflects the average number of days it takes for a company to pay its suppliers for goods and services received.
- Century Communities Inc's days of payables have been varying, with an up and down pattern, ranging from 9.76 days in 2021 to 18.60 days in 2023.
- A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which may have implications for supplier relationships and potential cash flow management strategies.
Overall, these activity ratios for Century Communities Inc suggest that the company has been experiencing challenges related to inventory management, collection of receivables, and payment to suppliers. It is crucial for the company to closely monitor and address these ratios to optimize its working capital efficiency and overall financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 53.45 | 142.20 | 169.06 | 111.37 | 70.45 |
| Total asset turnover | 0.89 | 1.19 | 1.21 | 1.11 | 1.01 |
The long-term activity ratios for Century Communities Inc show a fluctuating trend over the past five years. The fixed asset turnover ratio has varied significantly, with a sharp decline from 169.06 in 2021 to 53.45 in 2023. This indicates that the company generated less revenue from its fixed assets in 2023 compared to previous years. It is important to investigate the reasons behind this decrease, as a lower fixed asset turnover ratio may suggest inefficiencies in asset utilization or a decline in operational performance.
On the other hand, the total asset turnover ratio has also shown some variation, ranging from 1.01 in 2019 to 1.21 in 2021. A higher total asset turnover ratio generally indicates that the company is effectively utilizing its assets to generate sales. However, the ratio decreased to 0.89 in 2023, reflecting a potential decrease in overall asset efficiency.
Overall, the long-term activity ratios suggest that Century Communities Inc may be experiencing challenges in effectively utilizing its assets to generate revenue. Further analysis and evaluation of the company's asset management strategies and operational efficiency are recommended to address these fluctuations and improve long-term performance.