TRI Pointe Homes Inc (TPH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.04 | 0.07 | 0.10 | 0.13 | 0.12 | 0.12 | 0.12 | 0.13 | 0.14 | 0.35 | 0.53 | 0.71 | 0.87 | 0.87 | 0.84 | 0.79 | 0.81 | 0.74 | 0.77 | 0.78 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.50 | 4.97 | 4.51 | 4.76 | 5.13 | 25.78 | 20.78 | 11.79 | 6.36 | 7.31 | 7.33 | 6.40 | 5.64 | 7.35 | 7.33 | 5.35 | 10.01 | — | — | — |
Tri Pointe Homes Inc.'s activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
The Inventory turnover ratio is not provided in the table, which indicates a lack of data to assess how quickly the company is able to sell its inventory during the specified periods.
The Receivables turnover ratio shows a downward trend over the periods, from 25.66 in Q4 2022 to 16.54 in Q4 2023. This may suggest that the company is taking longer to collect payments from its customers, impacting its cash flow and liquidity.
The Payables turnover ratio fluctuates throughout the periods, peaking at 55.98 in Q1 2023. A higher ratio implies that the company is paying its suppliers more quickly, which could potentially strain its cash flow management if not properly balanced with receivables and inventory turnover.
The Working capital turnover ratio varies widely, with a significant increase from 6.43 in Q4 2022 to 66.00 in Q1 2022, which may indicate a shift in the company's efficiency in utilizing its working capital to generate sales. The absence of data for Q2 and Q3 of 2022 raises questions about the overall trend and consistency of this ratio.
Overall, the analysis of Tri Pointe Homes Inc.'s activity ratios highlights potential areas for improvement in managing inventory, receivables, payables, and working capital to enhance operational efficiency and financial performance.
Average number of days
| 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 | 8,686.21 | 5,150.53 | 3,482.63 | 2,840.89 | 2,923.50 | 3,134.79 | 3,042.29 | 2,862.82 | 2,655.88 | 1,056.17 | 689.84 | 514.88 | 419.89 | 417.57 | 432.15 | 462.11 | 452.47 | 492.14 | 472.70 | 466.43 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Tri Pointe Homes Inc.'s activity ratios can provide insight into how efficiently the company is managing its assets and operations.
1. Days of Inventory on Hand (DOH): Unfortunately, the table does not provide data for this metric across the quarters, making it difficult to assess how many days worth of inventory Tri Pointe Homes Inc. holds on average.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding measure indicates how long it takes the company to collect its accounts receivable. Tri Pointe Homes Inc. showed a decreasing trend in DSO from Q1 2022 to Q2 2023, which suggests an improvement in credit management and collection processes. A lower DSO indicates that the company is collecting payment from customers more quickly, which can improve cash flow and liquidity.
3. Number of Days of Payables: The Number of Days of Payables metric measures how quickly the company is paying its suppliers. Tri Pointe Homes Inc. showed some fluctuation in the number of days of payables across the quarters, with a notable decrease from Q2 2022 to Q3 2022. A lower number of days of payables could indicate the company is taking longer to settle its outstanding payables, potentially improving its cash position. However, it's essential to strike a balance to maintain positive relationships with suppliers.
Overall, while Tri Pointe Homes Inc. has shown some positive trends in its activity ratios, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.76 | 0.82 | 0.88 | 0.93 | 0.92 | 0.89 | 0.91 | 0.93 | 0.92 | 0.91 | 0.87 | 0.83 | 0.81 | 0.84 | 0.82 | 0.74 | 0.80 | 0.78 | 0.80 | 0.82 |
The fixed asset turnover ratio for Tri Pointe Homes Inc. has been relatively stable over the past eight quarters, ranging from 1.09 in Q4 2023 to 1.37 in Q1 2023. This indicates that the company generates approximately $1.09 to $1.37 in net sales for each dollar invested in fixed assets, such as property, plant, and equipment.
On the other hand, the total asset turnover ratio has also shown consistency, with values fluctuating between 0.76 in Q4 2023 and 0.93 in Q1 2023. This ratio signifies the company's ability to generate sales in relation to its total assets, indicating how efficiently it is utilizing its assets to generate revenue.
Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Tri Pointe Homes Inc. has been effectively utilizing its assets to drive sales and generate revenue over the past quarters. Monitoring these ratios can provide insights into the company's operational efficiency and asset utilization strategies.