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.