Green Brick Partners Inc (GRBK)

Short-term

Turnover ratios

Inventory turnover for Green Brick Partners Inc has shown a slight decrease over the past five years, indicating that the company is turning over its inventory at a slower rate. This may suggest inefficiencies in managing inventory levels or potential challenges in selling products in a timely manner.

Receivables turnover has fluctuated significantly over the past five years, with a particularly high peak in 2022. This could imply variations in collecting payments from customers or changes in sales and credit policies. The high turnover rate generally indicates that the company is efficient in collecting outstanding receivables.

Payables turnover has also shown some variability over the years but has mostly remained within a certain range. The decrease in payables turnover in 2020 followed by an increase in 2021 may indicate changes in the company's payment practices or relationships with suppliers.

Working capital turnover has exhibited a downward trend over the past five years, suggesting that the company is generating less revenue per unit of working capital. This could be a signal of inefficiencies in utilizing working capital resources or potentially slower growth relative to the capital invested.

Overall, Green Brick Partners Inc's activity ratios reflect mixed performance in managing inventory, receivables, payables, and working capital over the analyzed period. Further analysis and consideration of industry benchmarks would be beneficial to fully assess the company's operational efficiency and financial health.

---

Average number of days

Green Brick Partners Inc's activity ratios provide insight into the efficiency of its operations in managing inventory, collecting receivables, and paying its suppliers.

The Days of Inventory on Hand (DOH) measures how many days it takes for the company to sell its inventory. The trend shows a slight increase in inventory holding periods over the past five years, from 441.80 days in 2019 to 455.15 days in 2023. This indicates that the company might be facing challenges in efficiently managing its inventory levels and sales.

The Days of Sales Outstanding (DSO) indicates how quickly the company is collecting its accounts receivable. The trend shows fluctuations over the years, with a notable increase in DSO from 1.10 days in 2022 to 2.18 days in 2023. This suggests that Green Brick Partners Inc may be experiencing delays in collecting payments from its customers.

The Number of Days of Payables measures how long it takes for the company to pay its suppliers. The trend indicates fluctuation in the payment period over the years, with a notable increase in days of payables from 15.31 days in 2022 to 16.13 days in 2023. This implies that the company is taking slightly longer to pay its suppliers.

Overall, Green Brick Partners Inc should focus on optimizing its inventory management practices to reduce the Days of Inventory on Hand, improve its collection processes to lower the Days of Sales Outstanding, and maintain a balanced approach to managing payables to ensure efficient cash flow management.

---

Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Green Brick Partners Inc had a fluctuating trend in fixed asset turnover over the past five years, with a substantial increase from 2019 to 2022 followed by a decrease in 2023. This indicates that the company was able to generate more revenue per dollar of fixed assets invested in 2022 than in the preceding and subsequent years.

On the other hand, the total asset turnover ratio measures how well a company utilizes all of its assets to generate revenue. Green Brick Partners Inc demonstrated a consistent performance in total asset turnover, hovering around 1. This shows that the company effectively generated revenue relative to its total assets over the analyzed period.

Overall, the analysis of Green Brick Partners Inc's long-term activity ratios suggests that the company efficiently utilized its fixed assets in certain years but maintained a stable performance in terms of generating revenue from its total assets across the five-year period.