Taylor Morn Home (TMHC)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,417,830	8,224,920	7,501,260	6,129,320	4,762,060
Total current assets	US$ in thousands	5,022,280	4,906,020	5,425,150	4,826,630	3,550,780
Total current liabilities	US$ in thousands	161,264	306,072	413,887	127,289	123,233
Working capital turnover		1.53	1.79	1.50	1.30	1.39

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,417,830K ÷ ($5,022,280K – $161,264K)
= 1.53

The working capital turnover ratio for Taylor Morrison Home Corp. has fluctuated over the past five years, ranging from 1.17 in 2020 to 1.48 in 2022. This ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher working capital turnover ratio generally suggests that the company is effectively managing its working capital to support its sales activities.

In the case of Taylor Morrison Home Corp., the trend in the working capital turnover ratio shows some variability, indicating possible fluctuations in the company's working capital management efficiency over the years. It is important for the company to closely monitor and analyze the components of working capital, such as accounts receivable, inventory, and accounts payable, to ensure optimal utilization of resources and maximize operational efficiency.

Overall, while the working capital turnover ratios for Taylor Morrison Home Corp. have shown some variability, the company should continue to focus on maintaining an optimal balance of working capital to support its sales operations effectively. Regular monitoring and analysis of this ratio can help the company make informed decisions to improve its working capital management practices.