Century Communities Inc (CCS)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,398,290	3,692,180	4,505,920	4,216,310	3,161,190
Property, plant and equipment	US$ in thousands	155,176	69,075	31,688	24,939	28,384
Fixed asset turnover		28.34	53.45	142.20	169.06	111.37

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,398,290K ÷ $155,176K
= 28.34

Century Communities Inc's fixed asset turnover ratio, a measure of how efficiently the company is utilizing its fixed assets to generate sales, has shown some fluctuations over the years based on the provided data.

As of December 31, 2020, the fixed asset turnover ratio was 111.37, indicating that Century Communities was generating $111.37 in sales for every $1 of fixed assets invested. This high ratio suggests strong efficiency in utilizing fixed assets to generate revenue.

By December 31, 2021, the fixed asset turnover ratio improved to 169.06, indicating an even more effective use of fixed assets in generating sales. This significant increase suggests that Century Communities was able to increase sales significantly relative to its fixed asset base.

However, by December 31, 2022, the fixed asset turnover ratio decreased to 142.20. While still a relatively high ratio, this decline may indicate a slight decrease in the efficiency of using fixed assets to generate revenue compared to the previous year.

The ratio then dropped further to 53.45 by December 31, 2023, indicating a significant decrease in the efficiency of the company's fixed asset utilization. This could be a concern as the company may not be efficiently generating sales relative to its fixed asset investments.

By December 31, 2024, the fixed asset turnover ratio fell even more to 28.34, suggesting a continued decline in the efficiency of utilizing fixed assets to generate revenue. This decline may raise concerns about the company's ability to generate sufficient sales from its fixed assets.

Overall, the fluctuation in Century Communities Inc's fixed asset turnover ratio over the years indicates varying levels of efficiency in utilizing fixed assets to generate sales. Further analysis would be needed to understand the factors contributing to these fluctuations and to assess the company's overall operational efficiency.