TRI Pointe Homes Inc (TPH)

Fixed asset 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	3,715,206	3,978,306	4,211,590	4,391,951	4,348,534	4,035,744	3,997,134	3,997,504	3,982,226	3,833,046	3,632,320	3,384,366	3,260,450	3,340,890	3,256,821	3,185,429	3,083,011	3,074,441	3,101,117	3,173,706
Property, plant and equipment	US$ in thousands	66,284	66,608	66,789	66,880	67,430	70,591	68,083	58,751	51,489	49,790	49,492	50,672	52,494	55,809	58,155	60,882	57,803	59,367	56,180	56,462
Fixed asset turnover		56.05	59.73	63.06	65.67	64.49	57.17	58.71	68.04	77.34	76.98	73.39	66.79	62.11	59.86	56.00	52.32	53.34	51.79	55.20	56.21

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,715,206K ÷ $66,284K
= 56.05

Tri Pointe Homes Inc.'s fixed asset turnover has shown a fluctuating trend over the past eight quarters, ranging from 1.09 to 1.37. The fixed asset turnover measures the efficiency of the company in generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

The trend in Tri Pointe Homes Inc.'s fixed asset turnover indicates some variability in the company's operational efficiency over the quarters. The ratios have generally been above 1, suggesting that the company is efficient in generating revenue from its investment in fixed assets. However, the decreasing trend from Q1 2023 to Q4 2023 may indicate a potential decrease in efficiency in utilizing fixed assets to generate sales.

It is essential for Tri Pointe Homes Inc. to closely monitor its fixed asset turnover ratio and investigate any fluctuations to ensure optimal utilization of its fixed assets. The company may consider implementing strategies to improve efficiency in utilizing fixed assets effectively to drive higher sales and profitability.