Topbuild Corp (BLD)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Current ratio	2.08	2.01	2.34	2.81	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
Quick ratio	1.50	1.44	1.76	2.29	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
Cash ratio	0.52	0.34	0.62	1.24	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

Topbuild Corp's current ratio has shown a generally increasing trend over the years, indicating improving short-term liquidity levels. The current ratio has been above 1, ranging from 1.62 to 2.81, with the latest value standing at 2.08 as of December 31, 2024. This indicates the company's ability to cover its short-term obligations with its current assets.

In contrast, the quick ratio has been relatively stable, with values fluctuating between 1.10 and 2.29. The quick ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. As of December 31, 2024, the quick ratio stands at 1.50, indicating a moderate ability to cover short-term liabilities with more liquid assets.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown a fluctuating pattern over the years, ranging from 0.15 to 1.24. As of December 31, 2024, the cash ratio is 0.52, suggesting that Topbuild Corp may have a moderate ability to cover its short-term obligations with its available cash reserves.

Overall, Topbuild Corp's liquidity ratios show that the company has been maintaining sufficient liquidity to meet its short-term obligations, with varying levels of coverage and reliance on different types of current assets. The trends in these ratios provide insights into the company's liquidity position and its ability to manage short-term financial needs effectively.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash conversion cycle	days	47.73	51.87	54.95	51.37	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

The cash conversion cycle of Topbuild Corp has fluctuated over the years. The trend shows that the company's ability to convert its resources effectively into cash has varied.

From March 31, 2020, to December 31, 2021, the cash conversion cycle remained relatively stable, ranging from around 32 to 36 days. However, there was a significant increase in the cash conversion cycle from December 31, 2021, to March 31, 2024, reaching a peak of 60.40 days. This suggests that Topbuild Corp may be taking longer to convert its investments in inventory into cash during this period.

Subsequently, there was some improvement in the cash conversion cycle, with a slight decrease observed from March 31, 2024, to December 31, 2024, where the cycle reduced to around 47 to 51 days. This improvement indicates that the company may have enhanced its management of inventory, accounts receivable, and accounts payable, resulting in a more efficient conversion of resources into cash.

Overall, the fluctuating trend in Topbuild Corp's cash conversion cycle highlights the importance of closely monitoring and managing liquidity and working capital efficiency to ensure the company maintains a healthy cash flow position.