PulteGroup Inc (PHM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3,124.55 | 2,830.53 | 2,607.46 | 2,533.92 | 2,475.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 3,124.55 | 2,830.53 | 2,607.46 | 2,533.92 | 2,475.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3,124.55 + — – —
= 3,124.55
The cash conversion cycle of PulteGroup Inc has shown an increasing trend over the years, starting at 2,475.98 days on December 31, 2020 and reaching 3,124.55 days on December 31, 2024. This indicates that the company takes longer to convert its investments in inventory and accounts receivable into cash. A higher cash conversion cycle may imply inefficiencies in managing working capital, potentially leading to increased financing costs or liquidity constraints. PulteGroup Inc should focus on optimizing its inventory management and accounts receivable collection processes to shorten its cash conversion cycle and improve its overall financial performance.
Peer comparison
Dec 31, 2024