Green Brick Partners Inc (GRBK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.72 | 0.80 | 0.87 | 0.86 | 0.88 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.02 | 1.15 | 1.32 | 1.24 | 1.20 |
Green Brick Partners Inc's inventory turnover has been fairly stable over the past five years, with values ranging from 0.72 to 0.88. This indicates that the company is not efficiently managing its inventory, as a higher turnover ratio would suggest that inventory is being sold more quickly.
The receivables turnover and payables turnover ratios are not provided in the data, which makes it challenging to assess the efficiency of the company in collecting receivables and managing payables.
On the other hand, the working capital turnover ratio has shown some fluctuations over the years, ranging from 1.02 to 1.32. This ratio indicates how effectively Green Brick Partners Inc is utilizing its working capital to generate sales revenue. A higher ratio usually suggests better efficiency in using working capital.
Overall, while the working capital turnover ratio shows some efficiency in utilizing resources to generate revenue, the inventory turnover signals that Green Brick Partners Inc may need to improve its inventory management practices to enhance overall operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 506.85 | 455.15 | 420.55 | 422.13 | 415.81 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, Green Brick Partners Inc's Days of Inventory on Hand (DOH) has seen a slight increase over the years, from 415.81 days in December 2020 to 506.85 days in December 2024. This may suggest that the company is holding inventory for a longer period before turning it into sales.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis. It is worth noting that a higher DSO indicates that the company is taking longer to collect its accounts receivable, which could potentially strain its cash flow if not managed effectively. On the other hand, a longer Number of Days of Payables period may indicate that the company is taking longer to pay its creditors, which could impact relationships with suppliers.
Overall, Green Brick Partners Inc's inventory management may need attention as the Days of Inventory on Hand has been increasing, potentially tying up more capital in inventory. Further analysis of DSO and Payables turnover is needed to assess the company's overall working capital efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 275.65 | 498.89 | 271.49 |
| Total asset turnover | 0.93 | 0.93 | 1.06 | 0.99 | 0.99 |
The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Green Brick Partners Inc, we observe a substantial increase in the Fixed Asset Turnover ratio from 271.49 in 2020 to 498.89 in 2021, indicating a significant improvement in the company's ability to generate sales from its fixed assets. However, this ratio declined to 275.65 in 2022, suggesting a potential decrease in efficiency in utilizing fixed assets for revenue generation.
Total Asset Turnover ratio reflects the company's ability to generate revenue in relation to its total assets. Green Brick Partners Inc maintained a consistent Total Asset Turnover ratio of 0.99 in 2020 and 2021, indicating stable revenue generation relative to its total assets during those years. The ratio slightly increased to 1.06 in 2022, which may indicate improved efficiency in leveraging total assets to generate revenue. However, the ratio decreased to 0.93 in 2023 and 2024, which could imply a decline in the company's ability to generate sales from its total asset base during those years.
Overall, the analysis of Green Brick Partners Inc's long-term activity ratios highlights fluctuations in the efficiency of utilizing fixed assets and generating revenue across different years, which may suggest changes in the company's operational performance and asset management strategies over time.