Green Brick Partners Inc (GRBK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,111,290 | 1,743,310 | 1,521,240 | 1,304,170 | 883,494 |
| Total current liabilities | US$ in thousands | 59,746 | 195,150 | 189,592 | 170,905 | 67,062 |
| Current ratio | 35.34 | 8.93 | 8.02 | 7.63 | 13.17 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,111,290K ÷ $59,746K
= 35.34
The current ratio of Green Brick Partners Inc has shown a fluctuating trend over the past five years, with values of 13.17, 7.63, 8.02, 8.93, and 35.34 for the years ending December 31, 2020, 2021, 2022, 2023, and 2024 respectively. A high current ratio is generally considered favorable as it indicates the company's ability to cover its short-term liabilities with its current assets.
In this case, the significant increase in the current ratio from 7.63 in 2021 to 35.34 in 2024 suggests a substantial improvement in Green Brick Partners Inc's liquidity position. This could be attributed to an increase in cash reserves or other highly liquid assets relative to short-term liabilities. It is important to note that an excessively high current ratio could also indicate an inefficient use of resources, such as excessive cash holdings, and may require further investigation.
Overall, the upward trend in the current ratio indicates a positive liquidity position for Green Brick Partners Inc, which may enhance its ability to meet short-term obligations and operational needs.
Peer comparison
Dec 31, 2024