PulteGroup Inc (PHM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	16,211,600	16,435,100	14,116,200	11,036,100	10,213,000
Property, plant and equipment	US$ in thousands	221,500	200,300	149,200	131,700	111,700
Fixed asset turnover		73.19	82.05	94.61	83.80	91.43

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $16,211,600K ÷ $221,500K
= 73.19

Fixed asset turnover is a financial ratio that measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales.

Analyzing the fixed asset turnover of PulteGroup Inc over the past five years, we observe a fluctuating trend. The ratio decreased from 91.42 in 2019 to 83.77 in 2020, indicating a temporary decline in the efficiency of using fixed assets to generate revenue. However, this trend was reversed as the ratio increased to 93.37 in 2021, and further to 81.04 in 2022, demonstrating improved efficiency in asset utilization.

The most recent data for 2023 shows a fixed asset turnover of 72.52, which is lower than the previous year. This could suggest a potential decrease in the company's ability to generate revenue from its fixed assets in the most recent period.

Overall, the fluctuating trend in PulteGroup Inc's fixed asset turnover indicates varying levels of efficiency in utilizing fixed assets to generate revenue over the past five years. Further analysis into the company's operational strategies and investment in fixed assets may provide insights into the factors influencing these fluctuations.