Century Communities Inc (CCS)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	177,382	263,774	823,324	373,769	439,004
Total current liabilities	US$ in thousands	232,804	239,298	197,626	331,876	259,050
Current ratio		0.76	1.10	4.17	1.13	1.69

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $177,382K ÷ $232,804K
= 0.76

Century Communities Inc's current ratio has exhibited significant fluctuations over the past five years. Starting at 1.69 on December 31, 2020, the ratio decreased to 1.13 by December 31, 2021, indicating a potential liquidity strain. However, there was a substantial improvement in liquidity evidenced by a notable increase to 4.17 by December 31, 2022, suggesting ample current assets to cover short-term liabilities.

Despite the positive trend observed in 2022, the current ratio declined to 1.10 by December 31, 2023, raising concerns about the company's ability to meet its short-term obligations. This downward trend continued as the ratio dropped further to 0.76 by December 31, 2024, falling below the desirable threshold of 1.0.

Overall, the fluctuating current ratio of Century Communities Inc indicates varying levels of liquidity over the years, highlighting the importance of closely monitoring the company's ability to meet its short-term financial obligations.