Green Brick Partners Inc (GRBK)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,396,671	1,333,249	1,261,117	1,202,257	1,230,631	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
Inventory	US$ in thousands	1,937,730	1,918,050	1,792,060	1,655,490	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
Inventory turnover		0.72	0.70	0.70	0.73	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,396,671K ÷ $1,937,730K
= 0.72

Green Brick Partners Inc's inventory turnover has been fluctuating over the past few years. From March 31, 2020, to December 31, 2024, the inventory turnover ratios have ranged from a low of 0.70 to a high of 0.94. The average inventory turnover during this period is approximately 0.84.

A lower inventory turnover ratio suggests that the company is holding onto its inventory for a longer period, which may indicate inefficiencies in managing inventory or potential obsolescence issues. On the other hand, a higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be beneficial in terms of liquidity and avoiding excess inventory costs.

Overall, Green Brick Partners Inc should aim to strike a balance in managing its inventory turnover to ensure efficient operations and optimal use of resources.