TRI Pointe Homes Inc (TPH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,422,670 | 3,715,200 | 4,348,530 | 3,982,240 | 3,260,450 |
| Total current assets | US$ in thousands | 4,235,120 | 4,431,070 | 4,232,960 | 3,853,270 | 3,594,990 |
| Total current liabilities | US$ in thousands | 68,228 | 518,364 | 505,358 | 550,867 | 446,430 |
| Working capital turnover | 1.06 | 0.95 | 1.17 | 1.21 | 1.04 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,422,670K ÷ ($4,235,120K – $68,228K)
= 1.06
The working capital turnover ratio measures how effectively TRI Pointe Homes Inc is utilizing its working capital to generate revenue.
Based on the provided data:
- In December 31, 2020, the working capital turnover was 1.04, indicating that the company generated $1.04 in revenue for every $1 of working capital invested.
- In December 31, 2021, the ratio improved to 1.21, showing an increase in efficiency in utilizing working capital to generate revenue.
- By December 31, 2022, the ratio slightly decreased to 1.17, but still remained above 1, indicating continued effectiveness in utilizing working capital.
- However, in December 31, 2023, the ratio dropped to 0.95, suggesting a potential decline in the efficiency of using working capital to generate revenue.
- In December 31, 2024, the ratio slightly improved to 1.06, but still below the levels seen in 2021 and 2022.
Overall, the trend in TRI Pointe Homes Inc's working capital turnover indicates fluctuations in the efficiency of converting working capital into revenue over the years, with a potential slowdown in performance in 2023. Management may need to address this to ensure optimal utilization of working capital in driving revenue growth.
Peer comparison
Dec 31, 2024