Century Communities Inc (CCS)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,692,184	3,665,734	3,920,601	4,242,550	4,505,910	4,533,580	4,347,322	4,224,092	4,216,312	3,997,290	3,833,619	3,567,153	3,161,192	2,965,956	2,761,957	2,605,463	2,535,911	2,395,315	2,366,682	2,278,624
Total current assets	US$ in thousands	263,774	237,345	375,686	434,643	823,324	165,318	137,372	766,957	373,769	551,431	459,699	540,733	439,004	319,748	200,074	481,041	84,213	70,451	62,408	72,595
Total current liabilities	US$ in thousands	239,298	162,094	191,024	149,784	197,626	195,047	209,001	193,028	331,876	211,599	159,776	285,050	259,050	337,122	327,161	792,945	367,469	493,333	521,793	499,949
Working capital turnover		150.85	48.71	21.23	14.89	7.20	—	—	7.36	100.64	11.76	12.78	13.95	17.57	—	—	—	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,692,184K ÷ ($263,774K – $239,298K)
= 150.85

Century Communities Inc's working capital turnover has fluctuated over the past eight quarters, ranging from a low of 1.03 in Q4 2023 to a high of 1.45 in Q1 2022.

A working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively managing its working capital to support sales and operations.

The decreasing trend in the working capital turnover ratio from Q1 2022 to Q4 2023 may indicate that the company is becoming less efficient in utilizing its working capital to generate revenue. This could be a cause for concern as it may suggest that Century Communities Inc is not managing its working capital effectively or that its sales are not growing as expected relative to its working capital.

However, it is important to consider the industry norms and compare Century Communities Inc's working capital turnover ratio with its peers to gain a better understanding of its performance. Further analysis of the company's working capital management practices and overall financial health would be needed to accurately assess the implications of the fluctuations in the working capital turnover ratio.