Taylor Morn Home (TMHC)

Working capital 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
Revenue (ttm)	US$ in thousands	7,417,820	7,890,090	8,249,190	8,183,650	8,224,910	8,238,200	8,062,310	7,786,570	7,501,260	6,553,340	6,394,020	6,201,420	6,129,310	6,038,250	5,443,920	5,182,670	4,762,062	4,753,472	4,684,752	4,400,150
Total current assets	US$ in thousands	5,022,280	4,660,760	5,184,110	4,731,220	4,906,020	4,322,670	4,533,550	4,766,090	5,425,150	4,794,550	4,770,020	4,801,500	4,826,630	4,765,200	5,056,820	4,933,850	3,550,780	3,363,710	3,266,240	3,205,210
Total current liabilities	US$ in thousands	161,264	191,645	249,898	146,334	306,072	146,335	179,555	200,662	413,887	235,685	215,230	180,833	127,289	109,593	149,784	154,109	123,233	56,051	79,458	59,114
Working capital turnover		1.53	1.77	1.67	1.78	1.79	1.97	1.85	1.71	1.50	1.44	1.40	1.34	1.30	1.30	1.11	1.08	1.39	1.44	1.47	1.40

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,417,820K ÷ ($5,022,280K – $161,264K)
= 1.53

Taylor Morrison Home Corp. has demonstrated a consistent working capital turnover ratio over the past eight quarters, ranging from 1.31 to 1.48. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets to support its operations.

In this case, Taylor Morrison Home Corp. has maintained a relatively stable working capital turnover ratio, with minor fluctuations between quarters. This indicates a consistent level of efficiency in managing its working capital over the analyzed period. It's important to monitor this ratio over time to ensure that the company maintains its operational efficiency and financial health.