TRI Pointe Homes Inc (TPH)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,440,390	2,870,660	3,187,790	2,990,110	2,532,350
Inventory	US$ in thousands	3,153,460	3,337,480	3,173,850	3,054,740	2,910,140
Inventory turnover		1.09	0.86	1.00	0.98	0.87

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,440,390K ÷ $3,153,460K
= 1.09

TRI Pointe Homes Inc's inventory turnover has shown some fluctuations over the years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period.

Based on the data provided:
- The inventory turnover was 0.87 as of December 31, 2020, indicating that the company's inventory was turned over approximately 0.87 times during that year.
- The ratio increased to 0.98 by December 31, 2021, suggesting a slight improvement in inventory management efficiency.
- By December 31, 2022, the inventory turnover further increased to 1.00, signaling that the company was able to sell and replace its inventory once within the year.
- However, the ratio dropped to 0.86 by December 31, 2023, which may indicate a potential issue with either excess inventory or slower sales.
- Finally, by December 31, 2024, the inventory turnover ratio improved significantly to 1.09, showing that the company was managing its inventory more efficiently.

Overall, while there have been fluctuations in TRI Pointe Homes Inc's inventory turnover, the trend appears to be towards improved inventory management efficiency, with the company able to sell and replace its inventory more effectively in recent years.