TRI Pointe Homes Inc (TPH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,715,200 | 4,348,530 | 3,982,240 | 3,260,450 | 3,083,020 |
| Total current assets | US$ in thousands | 868,953 | 889,664 | 681,528 | 621,295 | 329,011 |
| Total current liabilities | US$ in thousands | 43,991 | 42,027 | 55,156 | 43,602 | 20,876 |
| Working capital turnover | 4.50 | 5.13 | 6.36 | 5.64 | 10.01 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,715,200K ÷ ($868,953K – $43,991K)
= 4.50
Tri Pointe Homes Inc.'s working capital turnover has demonstrated fluctuations over the past five years. The ratio declined from 25.57 in 2019 to 9.55 in 2020 before slightly increasing to 11.02 in 2021. Subsequently, there was a significant decline to 6.43 in 2022 and a further decrease to 5.43 in 2023. This indicates that the company is generating less revenue relative to its working capital in recent years. A lower working capital turnover may imply inefficiencies in managing working capital to support revenue generation. The declining trend over the years may prompt further investigation into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023