Century Communities Inc (CCS)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	263,774	823,324	373,769	439,004	84,213
Total current liabilities	US$ in thousands	239,298	197,626	331,876	259,050	367,469
Current ratio		1.10	4.17	1.13	1.69	0.23

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $263,774K ÷ $239,298K
= 1.10

The current ratio of Century Communities Inc has shown a generally increasing trend over the past five years. The ratio was 6.89 in 2019 and has since increased to 9.80 in 2023. This indicates that the company's ability to cover its short-term liabilities with its current assets has been improving steadily.

A current ratio above 1 is typically considered healthy, as it suggests that the company has more current assets than current liabilities to meet its short-term obligations. Century Communities Inc has consistently maintained a current ratio well above 1, indicating a strong liquidity position.

The gradual increase in the current ratio reflects the company's effective management of its current assets relative to its current liabilities. This implies that Century Communities Inc has sufficient liquid resources to cover its short-term obligations, which is a positive sign of financial health and stability.

Overall, the rising current ratio trend of Century Communities Inc signals a strong financial position and implies that the company is well-prepared to meet its short-term financial obligations.