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.
Peer comparison
Dec 31, 2023