Century Communities Inc (CCS)

Short-term

Turnover ratios

Century Communities Inc's activity ratios provide insights into how efficiently the company manages its operations related to inventory, receivables, payables, and working capital turnover.

1. Inventory Turnover: The inventory turnover for Century Communities Inc fluctuated over the periods provided, ranging from a peak of 136.07 at March 31, 2020, to a low of 0.14 at September 30, 2024. This ratio measures how many times the company's inventory is sold and replaced within a specific period. A higher turnover indicates efficient inventory management, whereas a lower turnover may suggest overstocking or slow sales.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly the company collects outstanding receivables from its customers. Century Communities Inc's receivables turnover was high in the initial periods but decreased significantly thereafter. The data is sporadic, with many periods having no values reported. A high turnover is generally preferable as it indicates timely collection of receivables, whereas a low turnover may signal potential issues with collection efforts or credit terms.

3. Payables Turnover: Unfortunately, no data was provided for Century Communities Inc's payables turnover ratio, which measures how quickly the company pays its suppliers. This ratio is essential for assessing the efficiency of the company's payment practices and managing its working capital effectively.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company generates revenue based on its working capital. Century Communities Inc's working capital turnover varied significantly, with values ranging from 7.20 to 150.85. A higher turnover implies better utilization of working capital, while a lower turnover may indicate that the company is not effectively utilizing its resources to generate sales.

In conclusion, analyzing these activity ratios can help stakeholders understand how effectively Century Communities Inc is managing its inventory, receivables, payables, and working capital to support its operations and drive profitability.

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Average number of days

Based on the data provided, Century Communities Inc's activity ratios exhibit fluctuations over time, reflecting changes in the efficiency of its operations.

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, the company holds inventory before it is sold. Century Communities Inc's DOH has shown significant variations, ranging from a low of 12.74 days as of December 31, 2020, to a high of 2,681.97 days as of June 30, 2022. These fluctuations may indicate changes in inventory management practices or possibly shifts in demand for the company's products.

2. Days of Sales Outstanding (DSO):
- The DSO ratio shows how long it takes the company to collect payment for its sales. Century Communities Inc's DSO ranged from as low as 0.23 days as of June 30, 2021, to as high as 42.77 days as of December 31, 2021. This suggests variations in the efficiency of the company's accounts receivable collection processes, with some periods indicating faster collections and others showing delays in receiving payments.

3. Number of Days of Payables:
- The absence of data for the Number of Days of Payables suggests that the company may not have sufficient information available or that payables are managed in a way that does not require tracking in days.

In conclusion, the activity ratios of Century Communities Inc fluctuate over the periods indicated, indicating variations in inventory management efficiency and the collection of accounts receivable. Monitoring these ratios can provide insights into the company's operational performance and efficiency in managing its working capital.

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Long-term

Century Communities Inc's Fixed Asset Turnover ratio, which measures how efficiently the company is generating sales from fixed assets, has shown a decreasing trend over the years. It ranged from a high of 169.06 in December 31, 2021, to a low of 26.23 in September 30, 2024. This decline indicates that the company may be facing challenges in effectively utilizing its fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio, which reflects the company's overall efficiency in generating sales from all assets, followed a fluctuating pattern. It peaked at 1.32 in June 30, 2021, and then decreased to 0.91 in September 30, 2024. This variability suggests that Century Communities Inc's ability to efficiently use all its assets to generate revenue has been inconsistent over the period.

In conclusion, based on the long-term activity ratios analysis, Century Communities Inc may need to focus on improving the utilization of its fixed assets to boost revenue generation and work towards maintaining a more stable and efficient overall asset turnover ratio.