PulteGroup Inc (PHM)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 582.33 | 927.18 | 2,661.37 | 2,658.12 | 2,936.21 | 2,778.36 | 2,699.58 | 2,588.15 | 2,677.88 | 2,623.19 | 2,642.97 | 2,504.58 | 2,531.63 | 2,472.36 | 2,447.31 | 2,481.59 | 2,174.07 | 2,226.61 | 862.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.22 | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 582.33 | 927.18 | 2,661.37 | 2,658.12 | 2,936.21 | 2,778.36 | 2,699.58 | 2,588.15 | 2,677.88 | 2,623.19 | 2,642.97 | 2,504.58 | 2,531.63 | 2,472.36 | 2,447.31 | 2,481.81 | 2,174.07 | 2,226.61 | 862.50 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of PulteGroup Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 365.03 days, indicating that it took approximately one year to convert its investments in inventory and accounts receivable into cash. This was an increase from the previous quarter, suggesting potential challenges in managing its working capital efficiently.
The trend in the cash conversion cycle over the past two years has been somewhat inconsistent, with some quarters showing improvements while others experiencing increases. The highest cash conversion cycle was recorded in Q3 2022 at 374.69 days, indicating a significant delay in converting assets into cash during that period.
Overall, PulteGroup Inc may need to focus on optimizing its inventory management and accounts receivable collection processes to shorten its cash conversion cycle and improve its liquidity position. A long cash conversion cycle can tie up financial resources and hinder the company's ability to invest in growth opportunities or meet short-term obligations promptly. Tracking this metric over time can provide valuable insights into the company's working capital management efficiency and financial performance.
Peer comparison
Dec 31, 2023