PulteGroup Inc (PHM)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,440,660	2,427,950	2,019,920	1,703,480	-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
Inventory	US$ in thousands	12,665,800	12,666,800	12,323,900	12,132,000	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
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,440,660K ÷ $12,665,800K
= 0.11

The inventory turnover ratio for PulteGroup Inc has shown fluctuations over the reported periods. Generally, a higher inventory turnover ratio is preferred as it indicates the company is selling its inventory more frequently.

In the given data, the inventory turnover ratio remained relatively stable around 0.14 to 0.15 from March 2020 to March 2022. However, a significant increase was observed in the ratio in June and September 2022, indicating a faster rate of inventory turnover.

There was a sharp increase in the inventory turnover ratio in June and September 2023, reaching 0.39 and 0.63, respectively. This substantial increase suggests that PulteGroup Inc was selling its inventory at a much faster rate during this period.

In contrast, there was a notable decline in the inventory turnover ratio in December 2023, dropping to -0.09. A negative ratio indicates potential issues with inventory management or irregularities in the reporting of inventory data.

From March 2024 to December 2024, the inventory turnover ratio fluctuated between 0.11 and 0.19, indicating some inconsistency in the rate of inventory turnover during this period.

Overall, the inventory turnover ratio for PulteGroup Inc has exhibited variability over the reported periods, with some significant fluctuations in certain quarters. Further analysis and comparison with industry benchmarks may provide a deeper understanding of the company's inventory management efficiency.