PulteGroup Inc (PHM)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	-1,091,340	7,261,702	4,462,222	1,567,857	1,555,230	1,463,512	1,413,857	1,334,471	1,275,954	1,215,462	1,165,877	1,101,394	1,125,321	1,097,968	1,119,752	1,171,917	1,129,689	1,314,575	1,279,031	3,176,680
Inventory	US$ in thousands	11,795,400	11,585,400	11,335,000	11,431,900	11,326,000	11,773,100	10,762,200	9,869,890	9,047,570	8,917,440	8,378,950	7,975,210	7,721,800	7,615,470	7,584,740	7,857,660	7,680,610	7,830,060	7,802,490	7,506,540
Inventory turnover		-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	0.15	0.17	0.16	0.42

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $-1,091,340K ÷ $11,795,400K
= -0.09

The inventory turnover ratio for PulteGroup Inc has been showing a fluctuating trend over the past eight quarters. In Q4 2023, the inventory turnover ratio was 0.96, which indicates that the company's inventory turnover has slightly decreased compared to the previous quarter. However, it is important to note that the ratio has been relatively stable around 1.0 over the past two years, with fluctuations mainly within the range of 0.92 to 1.05.

A low inventory turnover ratio suggests that the company may be holding onto its inventory for a longer period, which can tie up working capital and potentially lead to higher carrying costs. On the other hand, a high inventory turnover ratio indicates efficient management of inventory, resulting in lower storage costs and potentially higher profitability.

Overall, a consistently stable inventory turnover ratio around 1.0 for PulteGroup Inc suggests effective inventory management practices. However, monitoring the trend over future quarters will be important to assess any potential shifts in the company's inventory management efficiency.