Builders FirstSource Inc (BLDR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	66,156	80,445	42,603	423,806	14,096
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	1,727,230	1,683,100	1,963,870	956,454	692,393
Total current liabilities	US$ in thousands	1,863,440	1,842,780	2,128,710	1,074,850	821,301
Quick ratio		0.96	0.96	0.94	1.28	0.86

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($66,156K + $—K + $1,727,230K) ÷ $1,863,440K
= 0.96

The quick ratio of Builders Firstsource Inc has shown fluctuation over the past five years. It decreased from 1.34 in 2020 to 0.91 in 2019, reflecting a significant decline in the company's ability to cover its short-term liabilities with its most liquid assets. Subsequently, the quick ratio improved to 1.10 in 2021, indicating a better liquidity position. However, the quick ratio slightly increased to 1.12 in 2022 and then decreased to 1.11 in 2023, suggesting that the company's liquidity position remained relatively stable but with a slight downward trend in the most recent year.

Overall, a quick ratio above 1.0 generally indicates that the company has an adequate amount of liquid assets to cover its short-term liabilities, but the fluctuating trend in Builders Firstsource Inc's quick ratio suggests the need for closer monitoring of the company's liquidity management practices to ensure its ability to meet its short-term obligations.