Topbuild Corp (BLD)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,049,240 | 1,881,780 | 1,794,600 | 1,612,830 | 1,549,040 | 1,449,530 | 1,354,550 | 1,281,170 | 1,187,690 | 1,068,100 | 952,463 | 960,710 | 936,405 | 926,504 | 837,103 | 782,327 | 779,827 | 789,390 | 748,288 | 704,174 |
| 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 |
| Current ratio | 2.66 | 2.50 | 2.37 | 2.15 | 1.96 | 1.84 | 1.69 | 1.65 | 1.62 | 1.83 | 1.75 | 1.87 | 1.89 | 1.91 | 1.78 | 1.66 | 1.64 | 1.64 | 1.63 | 1.56 |
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 consistent improvement over the past eight quarters, indicating a strengthening liquidity position. The current ratio has increased from 1.65 in Q1 2022 to 2.66 in Q4 2023, highlighting the company's ability to meet its short-term financial obligations with its current assets. This trend suggests that TopBuild Corp has sufficient current assets to cover its current liabilities, which is a positive indicator of its financial health. A current ratio above 2 is generally considered healthy, and the company's current ratio well exceeds this threshold in the most recent quarter. Overall, the upward trend in TopBuild Corp's current ratio reflects a positive liquidity position and efficient management of current assets and liabilities.