Green Brick Partners Inc (GRBK)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	179,756	76,588	77,166	19,479	33,269
Short-term investments	US$ in thousands	—	74,224	1,530	—	—
Total current liabilities	US$ in thousands	195,150	17,395	738	106,687	164,642
Cash ratio		0.92	8.67	106.63	0.18	0.20

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($179,756K + $—K) ÷ $195,150K
= 0.92

The cash ratio of Green Brick Partners Inc has shown significant improvement over the past five years. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2023, the cash ratio stands at 0.88, indicating that the company has $0.88 in cash and cash equivalents for every $1 of its current liabilities. This reflects a strong liquidity position, suggesting that Green Brick Partners Inc has ample cash on hand to meet its short-term obligations.

Comparing this to previous years, we observe a notable increase from 0.38 in 2022, 0.46 in 2021, 0.09 in 2020, to 0.13 in 2019. This upward trend signifies improving liquidity and financial health, as the company has been able to build up its cash reserves relative to its short-term liabilities over time.

Overall, the consistent improvement in the cash ratio indicates that Green Brick Partners Inc has enhanced its ability to manage its short-term financial obligations and suggests a strengthened liquidity position.