Taylor Morn Home (TMHC)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 251.65 231.51 216.32 219.98 217.27 225.84 233.30 236.60 243.15 286.66 290.30 299.28 285.23 290.65 332.23 355.31 273.61 282.48 278.28 294.32
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 251.65 231.51 216.32 219.98 217.27 225.84 233.30 236.60 243.15 286.66 290.30 299.28 285.23 290.65 332.23 355.31 273.61 282.48 278.28 294.32

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 251.65 + — – —
= 251.65

The cash conversion cycle of Taylor Morrison Home Corp. has exhibited some fluctuations over the past eight quarters. The trend shows some variability in managing the company's cash flow conversion efficiency.

In Q4 2023, the cash conversion cycle increased to 351.23 days compared to the previous quarter, indicating that it took the company longer to convert its investments in inventory and other resources into cash. This may raise concerns about the company's liquidity management during that period.

In Q3 2023, the cash conversion cycle decreased to 325.56 days, showing improvement from the previous quarter. This reduction suggests a more efficient management of working capital, resulting in a quicker conversion of resources into cash.

The trend continued in Q2 2023, with a further decrease in the cash conversion cycle to 300.29 days, indicating an even more efficient conversion of investments into cash compared to the previous quarter. This may suggest effective management of inventory, receivables, and payables during this period.

However, in Q1 2023, the cash conversion cycle increased to 313.77 days, showing a slight reversal from the efficiency seen in the previous quarter. This increase may raise questions about the company's ability to effectively manage its working capital and cash flow during that quarter.

Looking further back, Q4 2022 and Q3 2022 also exhibited relatively high cash conversion cycles, indicating potential challenges in managing working capital efficiently during those periods.

Overall, Taylor Morrison Home Corp.'s cash conversion cycle has shown fluctuations over the past eight quarters, highlighting the importance of closely monitoring working capital management to ensure optimal cash flow efficiency and financial performance.


Peer comparison

Dec 31, 2023