Taylor Morn Home (TMHC)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	6,183,920	5,919,200	5,613,260	5,655,380	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
Inventory	US$ in thousands	4,481,920	4,392,540	4,313,030	4,122,620	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
Inventory turnover		1.38	1.35	1.30	1.37	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,183,920K ÷ $4,481,920K
= 1.38

The inventory turnover for Taylor Morn Home has shown a fluctuating trend over the past few years. The ratio stood at around 1.0 in March 2020 and has generally increased gradually over the subsequent quarters until reaching a peak of 1.68 in December 2022. This indicates that the company has been able to sell and replace its inventory more frequently over time.

However, after the peak in December 2022, the inventory turnover ratio started to decline slightly, reaching 1.38 by December 2024. This could suggest a slowdown in inventory movement or potentially inefficiencies in managing inventory levels.

Overall, the inventory turnover ratios for Taylor Morn Home demonstrate a mixed performance, with periods of improvement followed by slight declines. It is important for the company to further analyze the reasons behind these fluctuations to optimize inventory management and ensure efficient use of resources.