Century Communities Inc (CCS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	149,998	226,150	296,724	316,310	394,001
Short-term investments	US$ in thousands	—	15,853	25,449	13,456	8,727
Total current liabilities	US$ in thousands	232,804	239,298	197,626	331,876	259,050
Cash ratio		0.64	1.01	1.63	0.99	1.55

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($149,998K + $—K) ÷ $232,804K
= 0.64

The cash ratio of Century Communities Inc has fluctuated over the past five years. In December 2020, the cash ratio stood at 1.55, indicating the company had $1.55 in cash and cash equivalents for every dollar of current liabilities. However, by December 2021, the cash ratio decreased to 0.99, suggesting a lower liquidity position compared to the previous year.

Subsequently, in December 2022, the cash ratio improved to 1.63, reflecting an increase in liquidity and the company's ability to cover its short-term obligations with its cash reserves. However, in December 2023, the cash ratio declined to 1.01, indicating a slight decrease in liquidity compared to the previous year.

By December 2024, the cash ratio dropped to 0.64, signaling a significant reduction in the company's ability to cover its current liabilities with its available cash and cash equivalents. Overall, the fluctuation in Century Communities Inc's cash ratio over the five-year period suggests varying levels of liquidity and the need for continuous monitoring of its cash position and working capital management.