Century Communities Inc (CCS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2,400.36 | 2,568.82 | 2,472.82 | 2,439.01 | 2,451.25 | 2,567.60 | 2,404.88 | 2,286.60 | 2,343.40 | 2,643.29 | 2,681.97 | 2,450.96 | 2,301.19 | 2,087.96 | 1,903.33 | 1,870.45 | 12.74 | 2,019.86 | 2,129.73 | 2.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | 40.09 | — | — | 42.71 | 42.77 | — | 0.23 | 0.25 | 0.28 | 0.30 | 0.33 | 0.36 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 2,400.36 | 2,568.82 | 2,472.82 | 2,439.01 | 2,451.25 | 2,567.60 | 2,404.88 | 2,286.60 | 2,383.49 | 2,643.29 | 2,681.97 | 2,493.67 | 2,343.97 | 2,087.96 | 1,903.56 | 1,870.70 | 13.02 | 2,020.16 | 2,130.06 | 3.04 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2,400.36 + — – —
= 2,400.36
The cash conversion cycle of Century Communities Inc has shown fluctuations over the years, indicating changes in the company's efficiency in managing its cash flow.
In March 2020, the company had a cash conversion cycle of 3.04 days, suggesting a quick conversion of inventory and receivables into cash. However, by June 2020, the cycle significantly increased to 2,130.06 days, indicating a substantial delay in cash conversion, potentially due to operational challenges or changes in business practices.
From September 2020 to March 2021, the cash conversion cycle improved, indicating better management of working capital. The cycle remained relatively stable until December 2021, where a sudden increase to 2,343.97 days was observed, possibly due to increased inventory levels or slower collection of receivables.
Subsequently, the cycle fluctuated but generally trended upwards, reaching 2,472.82 days by June 2024. These fluctuations suggest potential challenges in managing operating cash flows efficiently, possibly due to changes in business operations, market conditions, or management decisions.
Overall, the analysis of Century Communities Inc's cash conversion cycle highlights the importance of monitoring working capital efficiency and cash flow management to ensure the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024