Topbuild Corp (BLD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,049,240 | 1,549,040 | 1,187,690 | 936,405 | 779,827 |
| Total current liabilities | US$ in thousands | 771,538 | 789,639 | 733,426 | 496,477 | 476,754 |
| Current ratio | 2.66 | 1.96 | 1.62 | 1.89 | 1.64 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,049,240K ÷ $771,538K
= 2.66
The current ratio of TopBuild Corp has shown a fluctuating trend over the past five years. As of December 31, 2023, the company's current ratio stands at 2.66, indicating a strong ability to cover its short-term obligations with current assets. This is a significant improvement from the previous year, where the current ratio was 1.96.
In 2021, the current ratio was 1.62, reflecting a lower liquidity position compared to the current year. However, the company's liquidity improved in 2020 with a current ratio of 1.89, although it dropped compared to 2019 when the ratio was 1.64.
Overall, the increasing trend in the current ratio from 2019 to 2023 suggests that TopBuild Corp has enhanced its liquidity position and strengthened its ability to meet short-term obligations over the years. This may indicate effective management of current assets and liabilities, providing a favorable indication of the company's financial health and stability.