Green Brick Partners Inc (GRBK)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,777,710 | 1,757,790 | 1,402,880 | 976,021 | 791,660 |
| Total current assets | US$ in thousands | 179,756 | 76,588 | 78,696 | 19,479 | 33,269 |
| Total current liabilities | US$ in thousands | 195,150 | 17,395 | 738 | 106,687 | 164,642 |
| Working capital turnover | — | 29.70 | 18.00 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,777,710K ÷ ($179,756K – $195,150K)
= —
Green Brick Partners Inc's working capital turnover has shown variability over the past five years, ranging from 1.16 in 2023 to 1.49 in 2020. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively managing its working capital to support its operations and sales activities.
The decrease in the working capital turnover ratio from 1.49 in 2020 to 1.16 in 2023 may suggest a decline in the company's efficiency in utilizing its working capital to generate sales. This decrease could be a result of various factors such as changes in the company's operating cycle, inventory management practices, or accounts receivable collection policies.
It is important for Green Brick Partners Inc to monitor and analyze its working capital turnover ratio regularly to ensure that it is optimizing the use of its working capital resources effectively. By understanding the trends in this ratio, the company can make informed decisions to improve its working capital management and overall financial performance.
Peer comparison
Dec 31, 2023