TRI Pointe Homes Inc (TPH)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 334.56 | 424.36 | 363.40 | 372.89 | 419.45 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 334.56 | 424.36 | 363.40 | 372.89 | 419.45 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 334.56 + — – —
= 334.56
TRI Pointe Homes Inc's cash conversion cycle has shown fluctuations over the past five years. From 2020 to 2021, the cycle decreased from 419.45 days to 372.89 days, indicating an improvement in the company's efficiency in converting its resources into cash. In 2022, the cycle further decreased to 363.40 days, reflecting continued operational efficiency.
However, in 2023, there was an increase in the cash conversion cycle to 424.36 days, potentially highlighting challenges in managing working capital effectively. Nonetheless, in 2024, the cycle decreased significantly to 334.56 days, suggesting a positive trend in managing cash inflows and outflows.
Overall, the variations in TRI Pointe Homes Inc's cash conversion cycle indicate fluctuations in the company's ability to efficiently manage its cash flow and working capital over the years, with a notable improvement in 2024.
Peer comparison
Dec 31, 2024