Topbuild Corp (BLD)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,598,970 | 2,049,240 | 1,549,040 | 1,187,690 | 936,405 |
| Total current liabilities | US$ in thousands | 767,182 | 771,538 | 789,639 | 733,426 | 496,477 |
| Current ratio | 2.08 | 2.66 | 1.96 | 1.62 | 1.89 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,598,970K ÷ $767,182K
= 2.08
Topbuild Corp's current ratio has shown variations over the past five years. The current ratio stood at 1.89 as of December 31, 2020, indicating that the company had $1.89 in current assets for every dollar of current liabilities.
Subsequently, the ratio decreased to 1.62 as of December 31, 2021, reflecting a lower liquidity position compared to the previous year. However, there was an improvement in the company's liquidity in the following years, with the ratio increasing to 1.96 as of December 31, 2022 and further to 2.66 as of December 31, 2023, indicating a stronger ability to cover its short-term obligations.
Despite the improvement in 2023, the current ratio decreased to 2.08 as of December 31, 2024. This reduction may suggest that the company's current assets relative to its current liabilities decreased, signifying a potential liquidity constraint.
Overall, while the company's current ratio has fluctuated over the years, it appears to have improved in recent years, indicating a better ability to meet its short-term obligations. However, the decreasing trend in 2024 may warrant further monitoring to assess the company's liquidity position in the future.