Green Brick Partners Inc (GRBK)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,229,528	1,239,409	1,234,069	1,276,963	1,234,768	1,257,626	1,234,005	1,150,587	1,040,817	889,570	846,501	752,609	741,417	732,583	689,327	653,614	622,578	589,298	540,003	513,019
Inventory	US$ in thousands	1,533,220	1,462,260	1,404,400	1,373,010	1,422,680	1,453,060	1,369,200	1,327,510	1,203,740	1,170,300	1,106,140	920,890	844,635	779,360	751,121	770,628	753,567	740,799	719,878	690,817
Inventory turnover		0.80	0.85	0.88	0.93	0.87	0.87	0.90	0.87	0.86	0.76	0.77	0.82	0.88	0.94	0.92	0.85	0.83	0.80	0.75	0.74

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,229,528K ÷ $1,533,220K
= 0.80

Inventory turnover is a vital financial ratio that measures how efficiently a company manages its inventory. In the case of Green Brick Partners Inc, the inventory turnover ratio has shown fluctuations over the past eight quarters.

The inventory turnover ratios for Q1 2023 to Q4 2023 are 0.93, 0.88, 0.85, and 0.80, respectively. This indicates a downward trend in the efficiency of inventory management during this period. A lower inventory turnover ratio suggests that the company is holding onto inventory for a longer period before selling it.

Comparing these figures to the inventory turnover ratios from Q1 2022 to Q4 2022, the values ranged from 0.87 to 0.90, with no clear trend in efficiency improvement or deterioration during this period.

Overall, Green Brick Partners Inc's inventory turnover has experienced fluctuations, indicating varying degrees of inventory management efficiency. It would be essential for the company to identify factors contributing to the changes in inventory turnover and take necessary steps to optimize inventory levels and turnover going forward.