Century Communities Inc (CCS)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,692,180	4,505,920	4,216,310	3,161,190	2,535,910
Total current assets	US$ in thousands	263,774	823,324	373,769	439,004	84,213
Total current liabilities	US$ in thousands	239,298	197,626	331,876	259,050	367,469
Working capital turnover		150.85	7.20	100.64	17.57	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,692,180K ÷ ($263,774K – $239,298K)
= 150.85

Century Communities Inc's working capital turnover has shown some fluctuations over the past five years. The ratio indicates the company's efficiency in generating revenue relative to its working capital. A higher working capital turnover ratio typically signifies better efficiency in utilizing its working capital to generate sales.

The working capital turnover ratio for Century Communities Inc was 1.03 in 2023, which is lower than the previous year's ratio of 1.38 in 2022. This suggests that the company was less efficient in utilizing its working capital to generate revenue in 2023 compared to 2022.

Looking further back, the trend shows some variability in the ratio with values of 1.41 in 2021, 1.35 in 2020, and 1.24 in 2019. This indicates that the company's efficiency in utilizing its working capital has fluctuated over the years, with some years showing better performance than others.

It is important for Century Communities Inc to closely monitor and manage its working capital turnover to ensure optimal utilization of resources and maximize revenue generation. Further analysis of the company's operational and financial strategies may be needed to understand the factors influencing these fluctuations in the working capital turnover ratio.