PulteGroup Inc (PHM)

Liquidity ratios

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
Current ratio 15.41 0.62 0.60 0.43 12.02 0.07 0.25 0.36 20.34 0.57 0.64 0.67 30.56 0.99 0.80 0.84 23.62 0.35 0.31 0.52
Quick ratio 19.82 0.76 0.75 0.57 19.76 0.07 0.46 0.52 31.17 0.78 0.86 0.88 37.24 1.18 0.99 1.01 33.44 0.54 0.48 0.68
Cash ratio 19.82 0.76 0.75 0.57 19.76 0.07 0.46 0.52 31.17 0.78 0.86 0.88 37.24 1.18 0.99 1.01 33.32 0.54 0.48 0.68

PulteGroup Inc's liquidity ratios have demonstrated a positive trend over the past eight quarters. The current ratio, which compares current assets to current liabilities, has consistently increased from 3.83 in Q4 2022 to 4.36 in Q4 2023. This indicates the company's ability to cover its short-term obligations has improved significantly.

On the other hand, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown improvement, albeit with fluctuations. The quick ratio increased from 0.18 in Q3 2022 to 0.84 in Q4 2023, signaling a strengthening ability to meet short-term liabilities without relying on selling inventory.

Similarly, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has been on an upward trajectory over the quarters. The cash ratio increased from 0.18 in Q3 2022 to 0.77 in Q4 2023, indicating an enhanced ability to settle immediate financial obligations with readily available cash.

Overall, PulteGroup Inc's liquidity position appears to have strengthened consistently over the quarters, as indicated by the improving current, quick, and cash ratios. This suggests the company is managing its short-term financial obligations effectively and has a solid foundation to support its ongoing operations.

Additional liquidity measure

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
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

The cash conversion cycle of PulteGroup Inc has shown fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates better efficiency in managing working capital and generating cash flows.

Analyzing the data provided, we observe that in Q4 2023, the cash conversion cycle was 365.03 days, reflecting a relatively lengthy period required to convert resources into cash. This is notably higher compared to the previous quarter where the cycle was 335.91 days. The increase in Q4 2023 may suggest challenges in efficiently managing inventory and receivables during that period.

Looking back at the trend, we notice that the cash conversion cycle has exhibited variability over the past few quarters. In Q2 2022 and Q3 2022, the cycle was relatively high at 341.65 days and 374.69 days, respectively. However, there was a notable improvement in Q1 2022 with a cycle of 324.29 days, indicating better management of working capital during that period.

Overall, PulteGroup Inc may benefit from focusing on optimizing its cash conversion cycle by streamlining its inventory management, improving customer collections, and enhancing overall operational efficiency to shorten the cycle and enhance cash flow generation.