Century Communities Inc (CCS)

Liquidity ratios

	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
Current ratio	0.76	0.75	0.55	0.75	1.10	1.46	1.97	2.90	4.17	0.85	0.66	3.97	1.13	2.61	2.88	1.90	1.69	0.95	0.61	0.61
Quick ratio	0.64	0.60	0.54	0.71	1.06	1.37	1.98	2.89	4.01	0.50	0.37	3.64	2.44	2.32	2.64	1.77	1.53	0.86	0.54	0.57
Cash ratio	0.64	0.60	0.54	0.71	1.06	1.37	1.98	2.89	1.50	0.50	0.37	1.08	0.95	2.32	2.63	1.76	1.52	0.86	0.53	0.57

Century Communities Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio shows an increasing trend from 0.61 in March 2020 to a peak of 4.17 in December 2022, before declining to 0.76 by December 2024. This suggests varying levels of liquidity over the analyzed period.

Similarly, the quick ratio also exhibits fluctuations but generally shows a healthier liquidity position compared to the current ratio. The quick ratio increased from 0.57 in March 2020 to 4.01 in December 2022, with a subsequent decline to 0.64 by December 2024.

The cash ratio, which provides a more stringent measure of liquidity by considering only cash and equivalents, follows a similar pattern to the quick ratio, demonstrating an improving liquidity position over the analyzed period but with some fluctuations. The ratio increased from 0.57 in March 2020 to 1.50 in December 2022, before decreasing to 0.64 by December 2024.

Overall, Century Communities Inc's liquidity ratios show a mix of fluctuations and improvements in liquidity levels. Monitoring these ratios can help stakeholders assess the company's ability to meet its short-term financial obligations and manage liquidity risk effectively.

Additional liquidity measure

		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 conversion cycle	days	2,400.36	2,568.82	2,472.82	2,439.01	2,451.25	2,567.60	2,404.88	2,286.60	2,383.49	2,643.29	2,681.97	2,493.67	2,343.97	2,087.96	1,903.56	1,870.70	13.02	2,020.16	2,130.06	3.04

The cash conversion cycle for Century Communities Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The company experienced a significant increase in its cash conversion cycle from March 31, 2020 (3.04 days) to June 30, 2020 (2,130.06 days), indicating a delay in converting investments into cash, possibly due to issues with inventory management or slow collections from customers.

There was a subsequent improvement in the cash conversion cycle from December 31, 2020 (13.02 days) to March 31, 2021 (1,870.70 days), indicating better working capital management.

However, the cash conversion cycle increased again by the end of 2022, reaching its peak at 2,681.97 days on June 30, 2022, and remained elevated above 2,000 days until September 30, 2024.

The high values of the cash conversion cycle may suggest inefficiencies in the company's operations, including slow inventory turnover, extended accounts receivable collection periods, or challenges in managing accounts payable.

Overall, Century Communities Inc should focus on optimizing its working capital management to shorten its cash conversion cycle, ensuring more efficient use of resources and improving its cash flow position.