PulteGroup Inc (PHM)

Days of inventory on hand (DOH)

		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
Inventory turnover		0.11	0.19	0.16	0.14	-0.09	0.63	0.39	0.14	0.14	0.12	0.13	0.14	0.14	0.14	0.14	0.14	0.15	0.14	0.15	0.15
DOH	days	3,208.96	1,904.23	2,226.93	2,599.49	—	582.33	927.18	2,661.37	2,658.12	2,936.21	2,778.36	2,699.58	2,588.15	2,677.88	2,623.19	2,642.97	2,504.58	2,531.63	2,472.36	2,447.31

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.11
= 3,208.96

The Days of Inventory on Hand (DOH) for PulteGroup Inc has shown fluctuations over the past few years. From March 31, 2020, to September 30, 2020, the DOH increased steadily. There was a slight decline by the end of December 31, 2020, but it started to climb again by March 31, 2021. The trend continued as the DOH reached its peak on September 30, 2022.

However, a significant drop was observed in the DOH by June 30, 2023, suggesting a sudden decrease in the number of days inventory was held. This could indicate improved inventory management or a change in the company's inventory strategy.

The DOH continued to decrease until December 31, 2024, where it significantly spiked, reaching 3,208.96 days. This sudden increase could raise concerns about potential issues in inventory management, such as overstocking or slow-moving inventory.

Overall, analyzing the DOH trend provides insights into PulteGroup Inc's inventory management efficiency and effectiveness in controlling inventory levels. It is essential for the company to monitor and manage its inventory levels effectively to optimize working capital and maintain a healthy balance between holding enough inventory to meet demand and minimizing carrying costs.