Century Communities Inc (CCS)

Short-term

Turnover ratios

Based on the provided data on Century Communities Inc's activity ratios, let's analyze each ratio:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. A higher ratio indicates better inventory management.
- Century Communities Inc's inventory turnover was 28.66 in December 2020, which decreased significantly to 0.16 by December 2021 and remained stable at 0.15 from 2023 to 2024. This suggests a significant decline in the efficiency of inventory turnover over the period.

2. Receivables Turnover:
- The receivables turnover ratio shows how many times a company collects its accounts receivable during a specific period. A higher ratio signifies efficient collection of receivables.
- Century Communities Inc had a very high receivables turnover of 1,298.76 in December 2020, which decreased to 8.53 in December 2021 and improved slightly to 9.11 in December 2022. The data for 2023 and 2024 is unavailable, which limits the analysis of receivables turnover trend.

3. Payables Turnover:
- Payables turnover ratio indicates how quickly a company pays off its suppliers. A higher ratio implies faster payment of payables.
- In this case, there is no data provided for payables turnover for any year, indicating that we are unable to evaluate the efficiency of the company's payment to suppliers.

4. Working Capital Turnover:
- This ratio measures how effectively a company generates revenue from its working capital. A higher ratio indicates efficient utilization of working capital.
- Century Communities Inc's working capital turnover was 17.57 in December 2020, significantly increasing to 100.64 by December 2021, and then decreasing to 7.20 in December 2022. It surged to 150.85 in December 2023; however, there is no data for 2024 to provide a complete trend analysis.

In conclusion, while Century Communities Inc demonstrated fluctuations in its activity ratios over the years based on the provided data, there are limitations due to missing figures for certain years like payables turnover in 2020-2024 and receivables turnover for 2023 and 2024, particularly affecting the comprehensive evaluation of the company's efficiency in managing inventory, receivables, and working capital.

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Average number of days

Century Communities Inc's Days of Inventory on Hand (DOH) increased significantly from 12.74 days at December 31, 2020, to 2,301.19 days at December 31, 2021, and further to 2,343.40 days at December 31, 2022. This indicates a substantial slowdown in inventory turnover, which could suggest inefficiencies in managing inventory levels or potential issues with sales or production.

Regarding Days of Sales Outstanding (DSO), there was a notable increase from 0.28 days at December 31, 2020, to 42.78 days at December 31, 2021, and then a slight improvement to 40.09 days at December 31, 2022. Although there is an improvement from 2021, the DSO numbers suggest that the company is taking longer to collect its accounts receivable, which could impact cash flow and liquidity.

For the Number of Days of Payables, the data shows that there were no payable days recorded for the years 2020 to 2024. This could indicate that the company manages its payables efficiently by paying off its obligations promptly, or it could suggest that there is no significant reliance on trade credit to fund operations.

Overall, the analysis of Century Communities Inc's activity ratios highlights potential weaknesses in inventory management and accounts receivable collection processes, which could impact the company's overall working capital efficiency and liquidity position.

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Long-term

Century Communities Inc's fixed asset turnover ratio has shown fluctuation over the years, with a significant increase from 111.37 in 2020 to 169.06 in 2021. However, it started to decrease in the following years, reaching 53.45 in 2023 and further declining to 28.34 in 2024. This decline may indicate that the company is not effectively utilizing its fixed assets to generate sales.

In terms of total asset turnover, the ratio has also exhibited variability. It stood at 1.11 in 2020, slightly increased to 1.21 in 2021, and then fluctuated around 1.19 in 2022. However, there was a notable decrease to 0.89 in 2023 before a slight recovery to 0.97 in 2024. The decreasing trend in total asset turnover suggests that the company may be facing challenges in efficiently generating revenue from its total assets.

Overall, these long-term activity ratios reflect the company's ability to generate sales in relation to its fixed assets and total assets. Investors and stakeholders may further evaluate the company's operational efficiency and asset utilization based on these ratios to assess its long-term performance and sustainability.