Builders FirstSource Inc (BLDR)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	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
Quick 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

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 fluctuations over the documented periods. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

From March 31, 2020, to June 30, 2020, there was an improvement in the quick ratio from 0.19 to 0.41, indicating better liquidity. However, the ratio declined to 0.31 by September 30, 2020, before increasing again to 0.39 by December 31, 2020.

A significant drop was observed on March 31, 2021, with a quick ratio of only 0.01, which may raise concerns about the company's ability to cover its short-term obligations. This low ratio improved slightly to 0.04 by June 30, 2021, and further to 0.11 by September 30, 2021.

The quick ratio displayed some volatility in the subsequent quarters, ranging from 0.07 to 0.11 up to June 30, 2022, before dropping back to 0.04 by December 31, 2022. There was a slight recovery to 0.08 on March 31, 2023, but the ratio remained relatively low.

The quick ratio significantly recovered to 0.39 on March 31, 2024, indicating a substantial improvement in liquidity. However, a decline was noted by June 30, 2024, with the ratio dropping to 0.04.

Overall, monitoring the quick ratio trends of Builders FirstSource Inc is crucial to understand its liquidity position and ability to meet its short-term obligations.