Century Communities Inc (CCS)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	4,398,293	4,330,443	4,082,996	3,887,737	3,692,184	3,665,734	3,920,601	4,242,550	4,505,910	4,533,580	4,347,322	4,224,092	4,216,312	3,997,290	3,833,619	3,567,153	3,161,192	2,965,956	2,761,957	2,605,463
Property, plant and equipment	US$ in thousands	155,176	165,117	97,215	74,647	69,075	34,044	32,663	33,019	31,688	30,450	27,304	27,791	24,939	25,592	26,359	28,181	28,384	31,550	33,277	35,004
Fixed asset turnover		28.34	26.23	42.00	52.08	53.45	107.68	120.03	128.49	142.20	148.89	159.22	151.99	169.06	156.19	145.44	126.58	111.37	94.01	83.00	74.43

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,398,293K ÷ $155,176K
= 28.34

Century Communities Inc's fixed asset turnover ratio has shown a fluctuating trend over the years, starting at a high of 74.43 in March 2020 and gradually increasing to a peak of 169.06 by December 2021. This indicates that the company was generating significant revenue relative to its fixed assets during this period.

However, the ratio began to decline from March 2022 onwards, reaching a low of 26.23 by September 30, 2024. This decline suggests that either the company's sales have decreased relative to its investment in fixed assets or that the value of fixed assets has increased significantly without a proportionate increase in revenue generation.

The sharp decrease in fixed asset turnover ratio raises concerns about the company's efficiency in utilizing its fixed assets to generate revenue. It may signal potential issues such as underutilization of assets, operational inefficiencies, or overinvestment in fixed assets.

Management should closely monitor this ratio and take corrective actions to improve operational efficiency and ensure optimal utilization of fixed assets to drive revenue growth and profitability in the future.