Topbuild Corp (BLD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 400,318 | 848,565 | 240,069 | 139,779 | 330,007 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 767,182 | 771,538 | 789,639 | 733,426 | 496,477 |
| Cash ratio | 0.52 | 1.10 | 0.30 | 0.19 | 0.66 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($400,318K
+ $—K)
÷ $767,182K
= 0.52
The cash ratio of Topbuild Corp has shown fluctuating trends over the past five years. As of December 31, 2020, the cash ratio was 0.66, indicating that the company had $0.66 in cash and cash equivalents for every $1 of current liabilities, reflecting a healthy liquidity position.
However, by December 31, 2021, the cash ratio had declined significantly to 0.19, suggesting a potential strain on the company's ability to cover its short-term obligations with cash on hand alone.
The ratio improved slightly by December 31, 2022, to 0.30, but it still remained relatively low compared to the previous years, indicating that Topbuild Corp may have faced liquidity challenges during that period.
Subsequently, by December 31, 2023, the cash ratio increased substantially to 1.10, signaling a significant improvement in the company's liquidity position. This indicates that Topbuild Corp had more than enough cash to cover its short-term obligations comfortably.
By December 31, 2024, the cash ratio decreased to 0.52, reflecting a slight decline in liquidity compared to the previous year but still suggesting that the company had an adequate level of cash reserves to meet its current liabilities.
Overall, the fluctuation in Topbuild Corp's cash ratio over the years highlights the importance of closely monitoring liquidity levels to ensure the company can meet its short-term obligations effectively.