Taylor Morn Home (TMHC)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.45	1.68	1.50	1.28	1.33
DOH	days	251.65	217.27	243.15	285.23	273.61

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.45
= 251.65

Taylor Morrison Home Corp.'s days of inventory on hand (DOH) measures the number of days it takes for the company to convert its inventory into sales. It is evident that the company has experienced fluctuations in its DOH over the past five years.

In 2023, the DOH stood at 359.21 days, showing an increase compared to the previous year's figure of 319.67 days. This indicates that the company may be holding onto its inventory for a longer period before selling it, which could tie up capital and potentially indicate inefficiencies in inventory management.

In 2022, the company's DOH decreased to 319.67 days from 337.17 days in 2021, suggesting a potential improvement in inventory turnover efficiency. However, this figure increased from 2019 to 2021, possibly reflecting challenges in managing inventory levels and sales.

The DOH was highest in 2020 at 382.75 days, signifying that Taylor Morrison Home Corp. took an extended period to sell its inventory that year. The company managed to decrease this figure to 337.17 days in 2021, indicating efforts to streamline inventory turnover, but the metric increased again in 2022.

Overall, the trend in Taylor Morrison Home Corp.'s DOH highlights the importance of efficient inventory management to optimize working capital and enhance profitability. Further analysis of inventory turnover ratios and industry benchmarks could provide deeper insights into the company's inventory management practices and performance.