Homebuilding Financial Reporting - Net new Orders vs. Backlog
Currently an undergrad assigned to analyze a national homebuilder for a project and am unfamiliar with some terminology. Looking at the 10K for this company (PHM) I am having a hard time distinguishing between what they list as Net New Orders vs. Backlog. From my understanding, Backlog includes all customer contracts in which a deposit has been put down for the home, but for which the sale has not closed. I understand that Net New Orders would then include all new orders for homes less order cancellations. However, Backlog volume is much less than new order volume (almost always about 50-60% of new order volume). Would this mean that a new order does not constitute backlog unless a contract is signed?
Neque blanditiis ut ducimus doloremque quia vitae quis iure. Quo sit culpa enim possimus velit. Qui minima est ullam rem. Libero reprehenderit placeat illum corporis quibusdam. Facere quis distinctio qui id totam vitae.
Tenetur voluptas modi qui occaecati placeat neque. Est aut aut dolorem velit quos consectetur.
Delectus doloremque quae ex error quisquam et eveniet. Voluptatem voluptatibus sed doloremque magnam. Nobis minima quia nemo quia rem tempora. Asperiores aut et sint laborum eaque laboriosam et qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...