Century Communities Inc (CCS)

Inventory 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
Cost of revenue (ttm) US$ in thousands 525,268 508,834 486,407 464,984 449,188 434,758 433,527 437,565 440,891 429,133 408,600 399,139 389,651 378,062 373,714 361,633 343,882 338,343 325,371 312,972
Inventory US$ in thousands 3,454,340 3,581,100 3,295,340 3,107,130 3,016,640 3,058,320 2,856,390 2,741,190 2,830,640 3,107,730 3,002,340 2,680,200 2,456,610 2,162,680 1,948,770 1,853,200 12,000 1,872,340 1,898,500 2,300
Inventory turnover 0.15 0.14 0.15 0.15 0.15 0.14 0.15 0.16 0.16 0.14 0.14 0.15 0.16 0.17 0.19 0.20 28.66 0.18 0.17 136.07

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $525,268K ÷ $3,454,340K
= 0.15

Century Communities Inc's inventory turnover has shown significant variability over the reporting periods. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced within a specific period.

From March 2020 to March 2024, the inventory turnover ranged from a high of 136.07 in March 2020 to a low of 0.14 in June 2022, September 2022, June 2023, September 2023, and September 2024.

The high turnover in March 2020 may suggest efficient management of inventory, with rapid sales and replenishment cycles. However, the subsequent decrease in turnover to very low levels in June 2022, September 2022, June 2023, September 2023, and September 2024 may indicate potential issues such as overstocking, slow sales, or inadequate inventory management.

A consistently low inventory turnover ratio could imply excess inventory levels, leading to holding costs, potential obsolescence, and reduced liquidity. Monitoring and improving inventory management practices would be crucial for Century Communities Inc to optimize its operations and financial performance. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory efficiency.