PulteGroup Inc (PHM)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	2,830.53	2,607.46	2,533.92	2,475.98	2,432.39
Days of sales outstanding (DSO)	days	—	—	—	—	0.22
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	2,830.53	2,607.46	2,533.92	2,475.98	2,432.61

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2,830.53 + — – —
= 2,830.53

The cash conversion cycle of PulteGroup Inc has exhibited fluctuations over the past five years. The trend indicates that the company's management of cash flow, inventory, and accounts receivable has varied from year to year. In 2023, the cash conversion cycle increased to 365.03 days, reflecting a lengthier period that the company requires to convert its resources back into cash. This may indicate potential challenges in managing working capital efficiently. Conversely, in 2021, the cash conversion cycle decreased to 311.04 days, showing an improvement in the company's liquidity management compared to the preceding years. Overall, monitoring the cash conversion cycle provides insights into PulteGroup Inc's ability to efficiently manage its working capital and cash flow, which are crucial aspects of its financial performance.