Topbuild Corp (BLD)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 848,565 | 615,612 | 526,327 | 333,778 | 240,069 | 159,384 | 123,869 | 126,553 | 139,779 | 327,906 | 261,739 | 319,619 | 330,007 | 315,338 | 258,837 | 187,039 | 184,807 | 171,591 | 141,767 | 98,278 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 771,538 | 753,670 | 758,343 | 751,243 | 789,639 | 788,581 | 801,693 | 777,921 | 733,426 | 584,798 | 543,236 | 514,284 | 496,477 | 485,146 | 471,525 | 471,083 | 476,754 | 482,533 | 458,055 | 451,350 |
| Cash ratio | 1.10 | 0.82 | 0.69 | 0.44 | 0.30 | 0.20 | 0.15 | 0.16 | 0.19 | 0.56 | 0.48 | 0.62 | 0.66 | 0.65 | 0.55 | 0.40 | 0.39 | 0.36 | 0.31 | 0.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($848,565K
+ $—K)
÷ $771,538K
= 1.10
The cash ratio of TopBuild Corp has shown a positive trend over the past eight quarters, indicating the company's increasing ability to cover its short-term obligations with its cash reserves.
In Q4 2023, the cash ratio reached 1.15, the highest level during the period analyzed, which suggests that the company had $1.15 in cash for every $1 of current liabilities. This indicates a strong liquidity position, which may be attributed to efficient cash management practices or an increase in cash holdings.
Compared to the prior quarters, the cash ratio has consistently improved, with a noticeable acceleration starting from Q2 2022. This sustained growth in the cash ratio reflects a favorable trend in TopBuild Corp's liquidity position over time.
Overall, the increasing cash ratio of TopBuild Corp indicates that the company has been able to strengthen its ability to meet its short-term obligations with its cash resources, which is a positive signal for investors and creditors regarding the company's financial health.