Builders FirstSource Inc (BLDR)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	153,624	66,156	80,445	42,603	423,806
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,777,280	1,863,440	1,842,780	2,128,710	1,074,850
Quick ratio		0.09	0.04	0.04	0.02	0.39

December 31, 2024 calculation

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

The quick ratio of Builders FirstSource Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the quick ratio was 0.39, indicating that the company had $0.39 in liquid assets available to cover each $1 of current liabilities. However, by the end of 2021, the quick ratio had significantly decreased to 0.02, suggesting a potential liquidity concern as the company's ability to meet its short-term obligations with its most liquid assets had weakened.

In the following years, there was a slight improvement in the quick ratio, reaching 0.04 by the end of 2022 and remaining at the same level by the end of 2023. This indicates a marginal increase in the company's liquidity position, although it still indicates a relatively low level of liquidity compared to current obligations.

By December 31, 2024, the quick ratio had further improved to 0.09, reflecting a better position in terms of liquidity compared to the previous years. While the quick ratio has shown some improvement, it is important to note that it remains below the ideal threshold of 1.0, suggesting that Builders FirstSource Inc may still face challenges in meeting its short-term obligations solely with its quick assets.