PulteGroup Inc (PHM)

Working capital 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
Revenue (ttm)	US$ in thousands	16,211,570	17,278,700	17,170,230	16,861,230	16,435,110	15,472,220	15,056,210	14,535,940	14,116,210	12,760,680	12,236,590	11,470,890	11,036,080	10,860,630	10,616,030	10,511,230	10,212,940	10,195,180	10,134,190	10,214,930
Total current assets	US$ in thousands	1,806,580	1,848,450	1,728,710	1,278,020	1,053,100	231,301	662,780	1,145,010	1,779,090	1,568,320	1,663,270	1,579,590	2,582,200	2,067,280	1,658,530	1,816,780	1,224,110	736,986	631,309	1,055,460
Total current liabilities	US$ in thousands	117,212	2,966,620	2,876,680	2,960,540	87,578	3,166,340	2,666,440	3,153,200	87,462	2,771,770	2,609,070	2,346,830	84,505	2,096,990	2,079,840	2,167,050	51,827	2,089,380	2,051,220	2,027,340
Working capital turnover		9.60	—	—	—	17.02	—	—	—	8.34	—	—	—	4.42	—	—	—	8.71	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $16,211,570K ÷ ($1,806,580K – $117,212K)
= 9.60

The working capital turnover ratio of PulteGroup Inc has been fluctuating over the past eight quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

The ratio has ranged from a low of 1.43 in Q4 2023 to a high of 1.81 in Q2 2022. A working capital turnover ratio above 1 suggests that the company is generating more sales revenue per dollar of working capital employed, which is generally viewed positively.

The trend shows a slight decline in the ratio from Q2 2022 to Q4 2023, indicating a possible decrease in the efficiency of working capital utilization during this period. This could be a point of concern for investors and analysts as it may signify that the company's sales revenue generation is not keeping pace with its working capital investment.

Overall, PulteGroup Inc should closely monitor its working capital turnover ratio and take appropriate measures to improve efficiency in working capital management to support sustainable growth and profitability.