Builders FirstSource Inc (BLDR)

Cash 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 and cash equivalents	US$ in thousands	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	14,096	43,271	10,552	11,724
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	821,301	863,745	848,219	737,911
Cash ratio		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	0.02	0.05	0.01	0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($66,156K + $—K) ÷ $1,863,440K
= 0.04

The cash ratio of Builders Firstsource Inc has been relatively stable over the past eight quarters, ranging from 0.19 to 0.25. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The slight decrease in the cash ratio from 0.25 in Q1 2022 to 0.19 in Q4 2023 may indicate that the company's cash position has decreased relative to its short-term liabilities. However, it is important to note that the cash ratio has remained within a reasonable range, suggesting that Builders Firstsource Inc has maintained a satisfactory level of liquidity to meet its short-term obligations.

Overall, while the cash ratio has fluctuated slightly, Builders Firstsource Inc appears to have managed its liquidity effectively, as indicated by the consistent levels of the cash ratio within the range of 0.19 to 0.25 over the past two years.