Century Communities Inc (CCS)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	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	2,368.64	2,616.15	2,521.89	988.02
Days of sales outstanding (DSO)	days	—	—	—	—	40.09	—	—	42.71	42.77	—	0.23	0.25	0.28	0.30	0.33	0.36	0.37	0.40	0.41	0.43
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	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	2,369.01	2,616.55	2,522.31	988.46

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2,451.25 + — – —
= 2,451.25

The cash conversion cycle for Century Communities Inc has shown some fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the company had a slightly longer cash conversion cycle, with figures of 370.02 days and 370.37 days respectively. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during those periods.

In Q2 2023, the cash conversion cycle decreased to 325.76 days, reflecting an improvement in the company's efficiency in managing its working capital. This trend continued into Q1 2023, where the cycle further reduced to 299.77 days, reaching its lowest point in the analyzed period.

Comparing these results to the same quarters in the previous year, there were fluctuations observed. In Q4 2022 and Q3 2022, the cash conversion cycle was higher at 299.25 days and 336.24 days respectively, indicating a less efficient management of working capital compared to Q4 and Q3 2023.

Overall, Century Communities Inc has shown variations in its cash conversion cycle over the analyzed period, with improvements in efficiency observed in some quarters and challenges in others. It is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal utilization of its resources.