PulteGroup Inc (PHM)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 1,479,580 1,479,700 1,585,450 1,303,260 1,138,320
Inventory US$ in thousands 12,665,800 11,474,900 11,326,000 9,047,570 7,721,800
Inventory turnover 0.12 0.13 0.14 0.14 0.15

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,479,580K ÷ $12,665,800K
= 0.12

Based on the provided data, PulteGroup Inc's inventory turnover has shown a decreasing trend over the years, declining from 0.15 in December 31, 2020, to 0.12 in December 31, 2024. This indicates that the company is taking longer to sell its inventory. A lower inventory turnover ratio could suggest potential issues such as overstocking, slow sales, or inefficient inventory management. It is important for PulteGroup Inc to closely monitor and manage its inventory levels to improve its turnover rate and optimize its working capital efficiency.