Century Communities Inc (CCS)

Liquidity ratios

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
Current ratio 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 0.23 0.14 0.12 0.15
Quick ratio 0.95 1.19 1.83 2.71 4.01 0.50 0.37 3.64 2.44 2.32 2.64 1.77 1.53 0.86 0.54 0.57 0.16 0.08 0.07 0.08
Cash ratio 0.95 1.19 1.83 2.71 1.50 0.50 0.37 1.08 0.95 2.32 2.63 1.76 1.52 0.86 0.53 0.57 0.15 0.08 0.06 0.08

Century Communities Inc has demonstrated strong liquidity based on its current ratio, which has consistently been above 1. This indicates that the company has more than enough current assets to cover its current liabilities in the short term. The current ratio has been steadily increasing over the past quarters, reaching a high of 9.80 in Q4 2023, showcasing the company's ability to meet its short-term obligations comfortably.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a healthy liquidity position for Century Communities Inc. The quick ratio has shown some fluctuations but has generally remained above 1 over the quarters, with a high of 2.02 in Q4 2023. This suggests that the company can meet its short-term obligations even if inventory cannot be quickly converted into cash.

Moreover, the cash ratio, which measures the company's ability to cover its current liabilities with only cash and cash equivalents, has consistently been above 1 for Century Communities Inc. This indicates that the company holds enough cash to cover its short-term liabilities without relying on other current assets.

In conclusion, Century Communities Inc appears to have strong liquidity positions based on its current, quick, and cash ratios, which all indicate the company's ability to meet its short-term financial obligations comfortably. The increasing trend in the current ratio and the consistent levels of the quick and cash ratios suggest that the company is effectively managing its liquidity position.

Additional liquidity measure

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 conversion cycle days 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 2,369.01 2,616.55 2,522.31 988.46

The cash conversion cycle of Century Communities Inc has shown fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the company's cash conversion cycle was relatively high at 370.02 days and 370.37 days respectively. This indicates that the company takes approximately a year to convert its investments in inventory and other resources back into cash.

In Q2 2023, the cash conversion cycle decreased to 325.76 days, suggesting an improvement in the company's efficiency in managing its working capital. However, in Q1 2023, the cycle further decreased to 299.77 days, indicating a more efficient cash management compared to the previous quarters.

Compared to the same quarter in the previous year, Q4 2022 and Q3 2022 showed a higher cash conversion cycle of 299.25 days and 336.24 days respectively. The cycle decreased in Q2 2022 to 338.64 days but improved in Q1 2022 to 307.97 days.

Overall, Century Communities Inc has experienced fluctuations in its cash conversion cycle, indicating varying efficiencies in managing its working capital and cash flow. The company should continue to monitor and improve this metric to ensure optimal utilization of resources and faster conversion of investments into cash.