Topbuild Corp (BLD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 400,318 | 848,565 | 240,069 | 139,779 | 330,007 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 751,612 | 799,009 | 836,071 | 668,419 | 427,340 |
| Total current liabilities | US$ in thousands | 767,182 | 771,538 | 789,639 | 733,426 | 496,477 |
| Quick ratio | 1.50 | 2.14 | 1.36 | 1.10 | 1.53 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($400,318K
+ $—K
+ $751,612K)
÷ $767,182K
= 1.50
Based on the provided data, Topbuild Corp's quick ratio has fluctuated over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
As of December 31, 2020, the quick ratio stood at 1.53, indicating that Topbuild had $1.53 in liquid assets available to cover each dollar of current liabilities.
However, by December 31, 2021, the quick ratio had declined to 1.10, suggesting a potential decrease in Topbuild's short-term liquidity.
The quick ratio improved in the following years, reaching 1.36 by December 31, 2022, and then significantly increasing to 2.14 by December 31, 2023. This improvement indicates a stronger ability to meet short-term obligations using liquid assets.
By December 31, 2024, the quick ratio had slightly decreased to 1.50 but still remained above the industry benchmark of 1. This implies that Topbuild Corp continues to maintain a relatively healthy level of liquidity to cover its short-term liabilities.
Overall, Topbuild Corp's quick ratio trend reflects both fluctuations and improvements in short-term liquidity management over the past five years.