Century Communities Inc (CCS)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,398,290	3,692,180	4,505,920	4,216,310	3,161,190
Total current assets	US$ in thousands	177,382	263,774	823,324	373,769	439,004
Total current liabilities	US$ in thousands	232,804	239,298	197,626	331,876	259,050
Working capital turnover		—	150.85	7.20	100.64	17.57

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,398,290K ÷ ($177,382K – $232,804K)
= —

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. Century Communities Inc's working capital turnover has shown significant fluctuations over the years, ranging from a low of 7.20 in December 31, 2022 to a high of 150.85 in December 31, 2023.

The steep increase from 17.57 in December 31, 2020 to 100.64 in December 31, 2021 indicates a notable improvement in the company's ability to generate sales relative to its working capital during this period. This suggests that the company managed its working capital more effectively, leading to a higher turnover rate.

However, the subsequent decrease to 7.20 in December 31, 2022 may indicate challenges or inefficiencies in managing working capital during that year, as the company was less effective in generating sales relative to its working capital. The sharp surge to 150.85 in December 31, 2023 signifies a remarkable recovery or improvement in the company's working capital efficiency, possibly through better management practices or operational optimization.

The lack of data for December 31, 2024 prevents further analysis of the trend. Overall, the fluctuating numbers reflect varying levels of efficiency in utilizing working capital to support sales growth in different years, highlighting the importance of closely monitoring and managing working capital to drive operational performance.