Topbuild Corp (BLD)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 848,565 | 615,612 | 526,327 | 333,778 | 240,069 | 159,384 | 123,869 | 126,553 | 139,779 | 327,906 | 261,739 | 319,619 | 330,007 | 315,338 | 258,837 | 187,039 | 184,807 | 171,591 | 141,767 | 98,278 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 799,009 | 870,890 | 857,664 | 833,959 | 836,071 | 815,633 | 773,744 | 735,452 | 668,419 | 516,941 | 491,625 | 462,848 | 427,340 | 436,548 | 423,000 | 431,649 | 428,844 | 454,640 | 444,823 | 428,713 |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($848,565K
+ $—K
+ $799,009K)
÷ $771,538K
= 2.14
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. TopBuild Corp's quick ratio has shown a generally increasing trend over the past eight quarters, indicating an improvement in the company's short-term liquidity position.
In Q4 2023, the quick ratio was 2.18, the highest among the quarters provided. This means that TopBuild Corp had $2.18 in liquid assets available to cover each $1 of current liabilities. The company's ability to meet its short-term obligations improved compared to the previous quarters.
Overall, the increasing trend in the quick ratio indicates that TopBuild Corp has been managing its liquidity effectively and has a strong ability to cover its short-term liabilities with liquid assets. This demonstrates the company's financial stability and ability to weather potential short-term financial challenges.