Taylor Morn Home (TMHC)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	5,634,760	5,999,310	6,192,180	6,084,840	6,132,550	6,193,380	6,182,980	6,120,020	5,953,390	5,265,160	5,188,600	5,080,530	5,085,100	5,079,420	4,583,711	4,332,851	3,937,963	3,919,203	3,862,552	3,633,019
Inventory	US$ in thousands	3,884,850	3,805,200	3,669,850	3,667,310	3,650,540	3,832,160	3,951,970	3,967,190	3,965,990	4,135,130	4,126,730	4,165,750	3,973,740	4,044,790	4,172,210	4,217,860	2,951,980	3,033,110	2,944,900	2,929,530
Inventory turnover		1.45	1.58	1.69	1.66	1.68	1.62	1.56	1.54	1.50	1.27	1.26	1.22	1.28	1.26	1.10	1.03	1.33	1.29	1.31	1.24

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,634,760K ÷ $3,884,850K
= 1.45

Taylor Morrison Home Corp.'s inventory turnover has exhibited fluctuating trends over recent quarters, ranging from a low of 1.02 in Q4 2022 to a high of 1.18 in Q2 2023. The average turnover rate of inventory over these periods is 1.09, indicating that on average, the company is able to sell and replace its inventory approximately 1.09 times per year.

A higher inventory turnover ratio is generally favorable as it signifies that the company is efficiently managing its inventory levels and selling its products quickly. The fluctuations in Taylor Morrison's turnover rate may indicate changes in demand, seasonal variations, or inventory management strategies. It is important for the company to closely monitor and analyze these trends to ensure optimal inventory levels and operational efficiency.