Century Communities Inc (CCS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,692,180	4,505,920	4,216,310	3,161,190	2,535,910
Property, plant and equipment	US$ in thousands	69,075	31,688	24,939	28,384	35,998
Fixed asset turnover		53.45	142.20	169.06	111.37	70.45

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,692,180K ÷ $69,075K
= 53.45

Fixed asset turnover measures how efficiently a company generates sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate revenue.

Century Communities Inc's fixed asset turnover ratio has been fluctuating over the years. In 2023, the ratio was 53.45, significantly lower than the ratios in 2022 (142.20) and 2021 (169.06), indicating a decrease in the efficiency of generating sales from fixed assets. However, it is important to note that a single year's ratio may not provide a complete picture, and it's essential to analyze trends over multiple years.

The declining trend in fixed asset turnover from 2021 to 2023 may suggest that Century Communities Inc is not efficiently utilizing its fixed assets to generate sales. Management should evaluate the company's asset management strategies to improve the efficiency of utilizing fixed assets and enhance profitability. Further analysis, such as comparing the industry average and benchmarking against competitors, would provide additional insights into the company's performance in this area.