Century Communities Inc (CCS)

Quick ratio

		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	US$ in thousands	226,150	193,111	350,488	405,722	296,724	98,203	78,011	209,046	316,310	491,879	419,416	502,906	394,001	288,341	173,521	450,973	55,436	38,508	31,704	38,115
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	494,884	—	—	494,310	494,117	—	2,380	2,407	2,434	2,460	2,486	2,571	2,602	2,632	2,672	2,700
Total current liabilities	US$ in thousands	239,298	162,094	191,024	149,784	197,626	195,047	209,001	193,028	331,876	211,599	159,776	285,050	259,050	337,122	327,161	792,945	367,469	493,333	521,793	499,949
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($226,150K + $—K + $—K) ÷ $239,298K
= 0.95

The quick ratio of Century Communities Inc has shown fluctuation over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.

In Q4 2023, the quick ratio was 2.02, indicating that the company had $2.02 in liquid assets available to cover each $1 of current liabilities. This suggests a strong liquidity position, implying that Century Communities Inc has a sufficient buffer to meet its short-term obligations without relying heavily on inventory.

Although there was a slight decrease in Q3 2023 to 1.53, the quick ratio remained above 1, indicating that the company could still meet its current obligations comfortably. The quick ratio then improved in Q2 2023 to 1.99 and was stable in Q1 2023 at 2.01, showing a consistent ability to cover short-term liabilities with liquid assets.

Comparing to the same quarter in the previous year, there has been an overall improvement in the quick ratio. In Q4 2022, the quick ratio was 1.85, indicating an increase in liquidity compared to the previous year. The trend continued with significant improvements in Q3 2022 (1.23), Q2 2022 (1.17), and Q1 2022 (1.39), reflecting a strengthening liquidity position over time.

Overall, Century Communities Inc has demonstrated a strong ability to cover its short-term obligations with liquid assets, as indicated by the quick ratio consistently exceeding 1. This suggests a healthy liquidity position and the company's ability to meet its short-term financial commitments effectively.