PulteGroup Inc (PHM)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3,208.96 | 1,904.23 | 2,226.93 | 2,599.49 | — | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 3,208.96 | 1,904.23 | 2,226.93 | 2,599.49 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3,208.96 + — – —
= 3,208.96
The cash conversion cycle measures how long it takes for a company, in this case, PulteGroup Inc, to convert its investments in inventory and other resources into cash from sales. A shorter cash conversion cycle indicates that the company is able to generate cash more quickly.
Analyzing PulteGroup Inc's cash conversion cycle data from 2020 to 2024, we can observe fluctuations in the number of days it takes for the company to convert its investments into cash:
- The company's cash conversion cycle was relatively stable in 2020 and 2021, ranging between approximately 2,400 to 2,700 days.
- There was a significant decrease in the cash conversion cycle in the second quarter of 2023, where it dropped to 927 days, indicating a more efficient cash conversion process.
- This trend continued in the following quarters, with the cash conversion cycle reaching its lowest point in December 2023, where it dropped to 0 days. This suggests that PulteGroup Inc was able to convert its investments into cash almost instantly during this period.
- However, the cash conversion cycle increased significantly in the following quarters of 2024, reaching as high as 3,209 days in December 2024. This implies that the company faced challenges in efficiently converting its investments into cash during this period.
Overall, fluctuations in PulteGroup Inc's cash conversion cycle indicate changes in its ability to manage working capital effectively. Investors and analysts should closely monitor these trends to assess the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024