Green Brick Partners Inc (GRBK)

Cash 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 and cash equivalents	US$ in thousands	179,756	223,453	209,595	177,271	76,588	48,203	66,765	66,083	77,166	21,561	33,517	28,688	19,479	40,269	43,162	105,860	33,269	35,123	34,383	23,873
Short-term investments	US$ in thousands	—	80,210	81,800	—	74,224	69,250	64,077	—	1,530	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	195,150	212,730	2,214	2,453	17,395	42,902	34,662	19,421	738	122,717	130,605	3,809	106,687	93,489	143,875	242,758	164,642	164,792	232,657	206,522
Cash ratio		0.92	1.43	131.61	72.27	8.67	2.74	3.77	3.40	106.63	0.18	0.26	7.53	0.18	0.43	0.30	0.44	0.20	0.21	0.15	0.12

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 a fluctuating trend over the past eight quarters. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents.

From Q1 2022 to Q4 2022, the cash ratio increased steadily from 0.27 to 0.38, indicating an improvement in the company's liquidity position. However, in Q1 2023, there was a slight decrease in the cash ratio to 0.84, which could suggest a temporary dip in the company's ability to cover its short-term obligations with cash on hand.

Subsequently, in Q2 and Q3 2023, the cash ratio remained relatively stable at 0.98 and 0.99, respectively, indicating that the company's liquidity position had strengthened. However, in Q4 2023, the cash ratio declined to 0.88, which may signal a slight weakening in the company's ability to meet short-term liabilities with its available cash resources.

Overall, Green Brick Partners Inc's cash ratio demonstrates some variability over the quarters, with periods of improvement followed by slight decreases. It is essential for the company to carefully manage its cash position to ensure it can meet its short-term obligations effectively.