Topbuild Corp (BLD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.14 | 1.97 | 1.83 | 1.55 | 1.36 | 1.24 | 1.12 | 1.11 | 1.10 | 1.44 | 1.39 | 1.52 | 1.53 | 1.55 | 1.45 | 1.31 | 1.29 | 1.30 | 1.28 | 1.17 |
| 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 |
TopBuild Corp's liquidity ratios have shown a generally positive trend over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has consistently improved, from 1.65 in Q1 2022 to 2.66 in Q4 2023. This indicates that the company has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown improvement over the same period, increasing from 1.15 in Q1 2022 to 2.18 in Q4 2023. This suggests that TopBuild Corp has a strong ability to meet its short-term obligations without relying on inventory.
The cash ratio, which focuses solely on the company's ability to cover current liabilities with its cash and cash equivalents, has also demonstrated a positive trend, rising from 0.20 in Q1 2022 to 1.15 in Q4 2023. This indicates that TopBuild Corp has a sufficient amount of cash on hand to meet its short-term obligations.
Overall, the improvement in TopBuild Corp's liquidity ratios over the past eight quarters suggests that the company is in a solid financial position with a strong ability to meet its short-term obligations.
Additional liquidity measure
| 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 conversion cycle | days | 48.38 | 54.20 | 54.72 | 58.00 | 57.55 | 57.12 | 58.18 | 60.40 | 58.01 | 36.64 | 35.91 | 36.52 | 32.30 | 34.60 | 36.71 | 36.73 | 36.02 | 39.57 | 39.92 | 40.47 |
The cash conversion cycle of TopBuild Corp has shown some variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 45.48 days, which was an improvement compared to the previous quarter Q3 2023 where it was 51.40 days. This indicates that the company was able to manage its cash flows more efficiently in the most recent quarter.
However, when looking at a longer trend, the cash conversion cycle has generally been fluctuating within a certain range between 50 and 60 days over the past two years. The longest cash conversion cycle was observed in Q1 2022 at 57.70 days, while the shortest was in Q4 2023 at 45.48 days.
Overall, the cash conversion cycle serves as a key indicator of the company's operational efficiency in managing its cash flow from the point of cash outflow to cash inflow. A lower cash conversion cycle suggests that the company is able to collect cash from customers, convert inventory to sales, and pay its suppliers more quickly, which is generally a positive sign of efficient working capital management.