Builders FirstSource Inc (BLDR)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	1,727,230	1,865,540	1,864,560	1,574,540	1,683,100	2,193,610	2,636,030	2,513,580	1,963,870	2,301,580	2,311,980	1,846,480	956,454	925,468	764,848	756,839	692,393	770,660	769,662	699,775
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
Quick ratio		0.96	0.96	1.00	0.94	0.96	0.99	1.11	1.04	0.94	1.24	1.07	1.00	1.28	1.17	1.23	1.07	0.86	0.94	0.92	0.96

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 been relatively stable over the past eight quarters, ranging from 1.10 to 1.27. This indicates the company's ability to meet its short-term liabilities with its most liquid assets such as cash, marketable securities, and accounts receivable remains consistent. A quick ratio above 1.0 suggests that the company has enough liquid assets to cover its current liabilities, which is a positive sign of financial health. However, a slight decrease in the quick ratio from Q3 2022 to Q1 2023 may indicate a potential challenge in the company's short-term liquidity management during that period. Overall, the quick ratio of Builders Firstsource Inc reflects a prudent level of liquidity and ability to meet its short-term obligations.