PulteGroup Inc (PHM)

Short-term

Turnover ratios

PulteGroup Inc's inventory turnover has shown a declining trend over the years, decreasing from 0.15 in December 2020 to 0.12 in December 2024. This suggests that the company is taking longer to sell its inventory, which could potentially indicate inefficiencies in managing its inventory levels or challenges in selling its products.

The receivables turnover ratio data is not provided, indicating that there is no available information on how quickly the company is collecting payments from its customers. Without this data, it is difficult to assess the efficiency of PulteGroup Inc's accounts receivable management.

Similarly, information on the payables turnover ratio is not available, which would have helped in understanding how quickly the company is paying its suppliers or managing its accounts payable.

On the other hand, the working capital turnover ratio has shown fluctuations over the years, with a notable increase in 2022. This ratio measures how effectively the company is utilizing its working capital to generate sales. The higher working capital turnover ratio in 2022 indicates that PulteGroup Inc was able to generate more sales relative to its investment in working capital during that period.

Overall, based on the data provided, PulteGroup Inc may need to focus on improving its inventory turnover and consider providing information on receivables and payables turnover to have a more comprehensive view of its operational efficiency.

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Average number of days

PulteGroup Inc's activity ratios can provide insight into how efficiently the company manages its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measures how many days, on average, the company holds its inventory before selling it.
- Over the years, PulteGroup Inc's DOH has been increasing, from 2,475.98 days in 2020 to 3,124.55 days in 2024.
- A higher DOH may indicate slower inventory turnover and potentially excessive inventory levels, which could tie up capital.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding ratio represents the average number of days it takes for the company to collect its accounts receivable.
- The DSO data for PulteGroup Inc is not available for the years provided.
- Without DSO information, it is challenging to assess the company's efficiency in collecting revenues from its customers.

3. Number of Days of Payables:
- The number of days of payables calculates how long, on average, the company takes to pay its suppliers.
- Similar to DSO, data on the number of days of payables for PulteGroup Inc is not provided.
- Understanding the payment terms with suppliers is crucial as it impacts the company's cash flow and relationships with vendors.

In conclusion, based on the available data, PulteGroup Inc's increasing DOH raises concerns about the management of its inventory levels and turnover. Further information on DSO and the number of days of payables would provide a more complete picture of the company's efficiency in managing its working capital and operational activities.

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Long-term

Analysis of PulteGroup Inc's long-term activity ratios reveals the following trends:

1. Fixed Asset Turnover: This ratio assesses how effectively the company utilizes its fixed assets to generate revenue. PulteGroup's fixed asset turnover has experienced fluctuations over the years, decreasing from 83.80 in 2020 to 71.84 in 2024. Despite the variations, the company's fixed assets have remained relatively productive, as evidenced by the turnover ratios consistently above 1.

2. Total Asset Turnover: This ratio measures the efficiency of the company in generating revenue from its total assets. PulteGroup's total asset turnover has shown an upward trend from 0.90 in 2020 to 1.05 in 2024. This indicates an improvement in the company's ability to generate sales relative to its total asset base over the years.

Overall, the analysis of PulteGroup Inc's long-term activity ratios suggests that the company has managed to maintain a healthy level of asset utilization and efficiency in generating revenue. The fluctuations in fixed asset turnover are notable, but the increasing trend in total asset turnover indicates a positive performance in optimizing the use of its assets to generate sales.