Builders FirstSource Inc (BLDR)

Cash ratio

		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 and cash equivalents	US$ in thousands	153,624	328,103	75,569	697,475	66,156	88,096	89,316	144,407	80,445	84,982	166,185	281,802	42,603	224,735	90,266	19,118	423,806	340,927	385,461	163,872
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,777,280	1,958,880	1,892,540	1,781,500	1,863,440	2,026,680	1,955,860	1,831,930	1,842,780	2,293,730	2,528,810	2,683,070	2,128,710	2,033,180	2,252,750	1,861,180	1,074,850	1,084,870	933,106	859,013
Cash ratio		0.09	0.17	0.04	0.39	0.04	0.04	0.05	0.08	0.04	0.04	0.07	0.11	0.02	0.11	0.04	0.01	0.39	0.31	0.41	0.19

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($153,624K + $—K) ÷ $1,777,280K
= 0.09

The cash ratio of Builders FirstSource Inc has fluctuated over the years, ranging from as low as 0.01 to as high as 0.41. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.

From the available data, we can observe that the company experienced significant variations in its cash ratio, reflecting changes in its cash position relative to its current liabilities. For instance, there was a notable increase in the cash ratio from March 31, 2020, to June 30, 2020, which suggests an improvement in the liquidity position during that period. However, there were subsequent fluctuations in the cash ratio in the following quarters, indicating potential shifts in the company's cash management practices or operational performance.

Overall, analyzing the cash ratio trend can provide insights into the company's liquidity management and financial health. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's ability to meet its short-term obligations and to make informed decisions regarding its financial prospects.