TRI Pointe Homes Inc (TPH)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 334.54 | 360.90 | 392.70 | 415.35 | 422.81 | 408.96 | 367.05 | 353.27 | 363.40 | 443.78 | 431.84 | 402.82 | 372.89 | 397.21 | 406.65 | 422.57 | 419.45 | 417.19 | 431.84 | 461.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 334.54 | 360.90 | 392.70 | 415.35 | 422.81 | 408.96 | 367.05 | 353.27 | 363.40 | 443.78 | 431.84 | 402.82 | 372.89 | 397.21 | 406.65 | 422.57 | 419.45 | 417.19 | 431.84 | 461.89 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 334.54 + — – —
= 334.54
TRI Pointe Homes Inc's cash conversion cycle has fluctuated over the years based on the provided data. The cash conversion cycle represents the time it takes for the company to convert its investment in inventory into cash inflows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a high of 461.89 days to a low of 334.54 days, showing varying efficiency in managing its working capital. A decreasing trend in the cash conversion cycle indicates improvements in managing inventory, accounts receivable, and accounts payable.
The company experienced a significant decrease in its cash conversion cycle from December 31, 2022 (363.40 days) to December 31, 2024 (334.54 days), indicating that TRI Pointe Homes Inc became more effective in converting its resources into cash during this period.
Overall, monitoring the cash conversion cycle is crucial for TRI Pointe Homes Inc to optimize its working capital management, enhance liquidity, and potentially improve profitability. Further analysis and comparison with industry benchmarks can provide a deeper understanding of the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024