PulteGroup Inc (PHM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,181,800 | 16,211,600 | 16,435,100 | 14,116,200 | 11,036,100 |
| Total current assets | US$ in thousands | 1,613,330 | 1,806,580 | 1,053,100 | 1,779,090 | 2,582,200 |
| Total current liabilities | US$ in thousands | 112,639 | 117,212 | 87,578 | 87,462 | 84,505 |
| Working capital turnover | 12.12 | 9.60 | 17.02 | 8.34 | 4.42 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,181,800K ÷ ($1,613,330K – $112,639K)
= 12.12
The working capital turnover of PulteGroup Inc has shown a significant improvement over the years, indicating the company's enhanced efficiency in utilizing its working capital to generate revenue. From a level of 4.42 in December 31, 2020, the ratio increased to 8.34 in December 31, 2021, and further surged to 17.02 in December 31, 2022, showcasing a remarkable upward trend.
The peak of 17.02 in December 31, 2022, signifies that for that period, PulteGroup Inc was able to generate $17.02 in revenue for every dollar of working capital invested. Although there was a slight decline in efficiency in December 31, 2023, with a ratio of 9.60, the company managed to maintain a strong performance compared to the initial periods. By December 31, 2024, the ratio rebounded to 12.12, indicating the company's ability to effectively utilize its working capital to support its operations and generate revenue efficiently.
Overall, the trend in PulteGroup Inc's working capital turnover reflects an improving operational efficiency and effective management of working capital resources over the years, which is a positive indicator for the company's financial health and performance.
Peer comparison
Dec 31, 2024