Taylor Morn Home (TMHC)

Working capital 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
Revenue (ttm) US$ in thousands 8,168,130 7,831,500 7,386,200 7,455,710 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
Total current assets US$ in thousands 5,186,450 4,914,340 4,872,900 4,893,540 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
Total current liabilities US$ in thousands 174,460 233,331 276,205 183,174 161,264 191,645 249,898 146,334 306,072 146,335 179,555 200,662 413,887 235,685 215,230 180,833 127,289 109,593 149,784 154,109
Working capital turnover 1.63 1.67 1.61 1.58 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,168,130K ÷ ($5,186,450K – $174,460K)
= 1.63

The working capital turnover of Taylor Morn Home has displayed an overall increasing trend over the past few years, indicating a more efficient utilization of working capital in generating sales. The ratio has gradually improved from 1.08 as of March 31, 2020, reaching its peak at 1.97 as of September 30, 2022. However, there was a slight dip in the ratio in the following quarters, with December 31, 2022, showing a ratio of 1.79, and March 31, 2023, displaying a ratio of 1.78.

Subsequently, the ratio continued to fluctuate around the 1.60 level until December 31, 2024, where it dropped to 1.63. Although there were fluctuations, the working capital turnover remained relatively stable and above 1.50, indicating that Taylor Morn Home effectively leveraged its working capital to generate sales during this period. Monitoring this ratio going forward will be essential to assess the company's efficiency in managing its working capital in the future.