Century Communities Inc (CCS)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	—	—	494,884	494,117	2,434
Total current liabilities	US$ in thousands	232,804	239,298	197,626	331,876	259,050
Quick ratio		0.64	1.01	4.13	2.48	1.56

December 31, 2024 calculation

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

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

Century Communities Inc's quick ratio has shown fluctuations over the past five years. The ratio stood at 1.56 on December 31, 2020, indicating that the company had $1.56 in highly liquid assets available to cover each dollar of its current liabilities.

On December 31, 2021, the quick ratio improved significantly to 2.48, suggesting an enhanced liquidity position compared to the previous year. This indicates that the company had $2.48 in liquid assets for every dollar of current liabilities.

By December 31, 2022, the quick ratio further increased to 4.13, signaling a substantial improvement in liquidity. This implies that the company had $4.13 in liquid assets available for each dollar of current liabilities, reflecting a strong liquidity position.

However, on December 31, 2023, the quick ratio dropped to 1.01, indicating a potential deterioration in the company's liquidity position. A ratio of 1.01 suggests that the company had just enough liquid assets to cover its short-term liabilities.

By the end of December 31, 2024, the quick ratio decreased further to 0.64, which is below 1. This signifies a concerning liquidity position, as the company only had $0.64 in liquid assets for every dollar of current liabilities, indicating potential challenges in meeting short-term obligations.

In conclusion, while Century Communities Inc experienced fluctuations in its quick ratio over the five-year period, the trend indicates varying levels of liquidity. It is essential for investors and stakeholders to monitor these changes in the quick ratio to assess the company's ability to meet its short-term financial obligations.