Green Brick Partners Inc (GRBK)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.92 | 1.05 | 94.67 | 72.27 | 4.40 | 1.12 | 1.93 | 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 |
| Quick 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 |
| 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 |
Green Brick Partners Inc has shown consistently strong liquidity ratios in terms of current ratio, quick ratio, and cash ratio over the past eight quarters. The current ratio has been above 5 in each quarter, indicating a strong ability to cover short-term obligations with current assets. The quick ratio, which provides a more stringent measure by excluding inventory from current assets, has also remained relatively high, albeit showing some fluctuations. The cash ratio, which focuses solely on liquid cash to cover current liabilities, has generally been low but has shown an increasing trend.
Overall, Green Brick Partners Inc appears to have a healthy liquidity position, with ample current assets to meet short-term obligations and a modest but improving level of cash on hand relative to current liabilities. This suggests that the company is well-positioned to manage its day-to-day financial obligations and unexpected cash needs.
Additional liquidity measure
| 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 conversion cycle | days | 455.15 | 430.63 | 415.38 | 392.45 | 420.55 | 421.72 | 404.99 | 421.13 | 422.13 | 480.19 | 476.95 | 446.61 | 415.81 | 388.31 | 397.72 | 430.34 | 441.80 | 458.84 | 486.58 | 491.50 |
The cash conversion cycle of Green Brick Partners Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle increased to 441.21 days, indicating that it took longer for the company to convert its investments in inventory and accounts receivable into cash during that period. This was a notable increase from the previous quarter's cycle of 416.04 days.
Looking further back, in the same quarter of the previous year (Q4 2022), the company had a slightly lower cash conversion cycle of 406.33 days. This suggests that the company's efficiency in managing its working capital had worsened in Q4 2023 compared to the same period a year earlier.
Moreover, the trend over the past eight quarters shows some variability in the cash conversion cycle, with fluctuations between 378.80 days and 441.21 days. This suggests that Green Brick Partners Inc may face challenges in managing its cash flow effectively and optimizing its working capital.
Overall, the company should focus on improving its cash conversion cycle by streamlining its operations, managing inventory levels efficiently, and optimizing its accounts receivable collection processes to enhance its cash flow and overall financial performance.