Green Brick Partners Inc (GRBK)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 141,543 80,069 158,176 185,897 199,459 223,453 209,595 177,271 76,588 48,203 66,765 66,083 78,696 21,561 33,517 28,688 19,479 40,269 43,162 105,860
Short-term investments US$ in thousands — — 36,557 34,701 — 80,210 81,800 — 74,224 69,250 64,077 — 55,616 — — — — — — —
Total current liabilities US$ in thousands 59,746 278,721 244,159 219,408 195,150 212,730 199,966 195,849 189,592 246,933 248,130 229,496 170,905 182,960 166,886 145,308 67,062 102,313 68,113 62,824
Cash ratio 2.37 0.29 0.80 1.01 1.02 1.43 1.46 0.91 0.80 0.48 0.53 0.29 0.79 0.12 0.20 0.20 0.29 0.39 0.63 1.69

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($141,543K + $—K) ÷ $59,746K
= 2.37

The cash ratio is a financial metric that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and a lower risk of financial distress.

Analyzing the cash ratio of Green Brick Partners Inc over the past few years, we observe fluctuations in the ratio. The cash ratio stood at 1.69 as of March 31, 2020, indicating a healthy level of cash relative to short-term liabilities. However, the ratio declined to 0.63 by June 30, 2020, and further dropped to 0.39 by September 30, 2020, reflecting a decrease in the company's ability to cover its short-term obligations with cash on hand.

Throughout 2021 and the first half of 2022, the cash ratio remained relatively low, hovering around 0.20 to 0.53. This suggests that Green Brick Partners Inc may have faced liquidity challenges during this period. However, there was a significant improvement in the cash ratio by the end of 2022, reaching 0.80 by December 31.

From March 2023 onwards, the cash ratio of Green Brick Partners Inc showed a steady increase, surpassing 1.0 consistently until September 30, 2024, where it reached 1.43. This upward trend indicates an enhancement in the company's liquidity position and its ability to meet short-term obligations with cash reserves.

Notably, there was a substantial spike in the cash ratio to 2.37 by December 31, 2024, reflecting a significant accumulation of cash or reduction in short-term liabilities during that period.

In conclusion, the cash ratio of Green Brick Partners Inc has exhibited fluctuations over the years, with periods of lower liquidity followed by improvements in its cash position. The recent trend of increasing cash ratio indicates a strengthened liquidity position, which can enhance the company's financial stability and flexibility in managing its short-term obligations.