PulteGroup Inc (PHM)

Short-term

Turnover ratios

Inventory turnover measures how effectively a company manages its inventory by showing how many times it sells and replaces its inventory in a period. A lower inventory turnover ratio indicates slower inventory movement. PulteGroup's inventory turnover has been declining gradually over the past five years, from 1.02 in 2019 to 0.96 in 2023. This suggests that the company might be facing challenges in selling its inventory efficiently.

Receivables turnover ratio reflects how quickly a company collects cash from its customers. PulteGroup's receivables turnover has been increasing steadily over the last five years, indicating an improvement in its collection efficiency. The ratio increased from 40.78 in 2019 to 68.02 in 2023, showing that the company is collecting its receivables at a faster pace.

Payables turnover ratio measures how well a company manages its payables by showing how often it pays its suppliers. PulteGroup's payables turnover ratio has fluctuated over the years but has remained relatively stable. The ratio decreased from 20.35 in 2019 to 18.32 in 2023, suggesting a slight decline in the company's payment efficiency.

Working capital turnover ratio indicates how well a company generates sales revenue using its working capital. PulteGroup's working capital turnover has fluctuated over the years but has generally shown a stable trend. The ratio decreased from 1.37 in 2019 to 1.43 in 2023, indicating a slight decrease in the efficiency of generating sales with working capital.

Overall, while PulteGroup has shown improvements in managing its receivables, its inventory turnover has been declining. The company's payables turnover has been relatively stable, and the working capital turnover has fluctuated but generally remained steady. Monitoring these ratios can provide insight into the company's operational efficiency and financial health.

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Average number of days

The activity ratios of PulteGroup Inc over the past five years show the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.

The Days of Inventory on Hand (DOH) have increased steadily from 358.70 days in 2019 to 379.59 days in 2023. This suggests that the company is holding onto inventory for a longer period before selling it, which may indicate either a strategic decision to maintain higher inventory levels or potential inefficiencies in inventory management.

The Days of Sales Outstanding (DSO) have shown a decreasing trend from 8.95 days in 2019 to 5.37 days in 2023. This indicates that the company is collecting its accounts receivable more efficiently over the years, which is a positive sign of effective credit management and the company's ability to convert sales into cash quickly.

The Number of Days of Payables have fluctuated over the years, ranging from 17.94 days in 2019 to 22.60 days in 2020. In 2023, it was 19.92 days. This suggests that the company takes, on average, around 20 days to pay its suppliers or vendors, indicating a relatively stable payment policy.

Overall, PulteGroup Inc has shown improvements in managing its accounts receivable and maintaining a stable payment policy with suppliers. However, the increasing trend in Days of Inventory on Hand warrants further investigation to assess the company's inventory management practices.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. PulteGroup Inc's fixed asset turnover has been fluctuating over the past five years, ranging from 72.52 in 2023 to 91.42 in 2019. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio indicates how well a company is utilizing all its assets to generate revenue. PulteGroup Inc's total asset turnover has generally been stable, with a slight increase from 0.95 in 2019 to 1.10 in 2022, before decreasing to 1.00 in 2023. A higher total asset turnover ratio suggests that the company is efficient in generating sales relative to its total assets.

Overall, PulteGroup Inc's long-term activity ratios reflect a mix of efficiency in utilizing both fixed and total assets to generate revenue, with some fluctuations observed over the five-year period. Further analysis and comparison to industry benchmarks may provide additional insights into the company's operational performance.