Century Communities Inc (CCS)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	525,267	449,188	440,891	389,651	343,882
Inventory	US$ in thousands	3,454,340	3,016,640	2,830,640	2,456,610	12,000
Inventory turnover		0.15	0.15	0.16	0.16	28.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $525,267K ÷ $3,454,340K
= 0.15

Century Communities Inc experienced a notable decline in inventory turnover over the period from December 31, 2020, to December 31, 2024. The inventory turnover ratio, which stood at a healthy 28.66 in December 2020, decreased dramatically to 0.16 by the end of December in both 2021 and 2022. This sharp drop indicates that the company's inventory took significantly longer to sell in those years, reflecting potential issues such as overstocking or slow sales.

Furthermore, the inventory turnover ratio remained stagnant at 0.15 in both December 2023 and December 2024. This sustained low turnover rate suggests that Century Communities Inc continued to face challenges in efficiently managing and selling its inventory. A low inventory turnover ratio can lead to increased carrying costs, risks of obsolescence, and liquidity issues.

Overall, the trend of decreasing inventory turnover for Century Communities Inc signals potential inefficiencies in inventory management and sales processes that may require attention to improve operational performance and financial health.