Green Brick Partners Inc (GRBK)

Liquidity ratios

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
Current ratio 35.34 7.30 8.05 8.70 8.93 8.45 8.62 8.05 8.02 6.18 5.91 6.16 7.63 6.72 7.01 6.69 13.17 8.17 11.99 14.16
Quick 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
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

Green Brick Partners Inc's liquidity ratios show fluctuations over the periods analyzed.

1. Current Ratio: Green Brick Partners Inc has maintained a relatively high current ratio, ranging from 5.91 to 35.34. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position, reflecting the company's ability to meet its short-term obligations.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, measures the company's ability to pay off its current liabilities without relying on the sale of inventory. Green Brick Partners Inc's quick ratio fluctuated between 0.12 and 2.37. A higher quick ratio is generally preferred as it indicates a more robust liquidity position.

3. Cash Ratio: The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. Green Brick Partners Inc's cash ratio ranged from 0.12 to 2.37. A higher cash ratio signifies a greater ability to cover short-term obligations with cash on hand.

Overall, while there have been fluctuations in the liquidity ratios of Green Brick Partners Inc, the company has maintained generally healthy levels of liquidity, as evidenced by its current, quick, and cash ratios over the periods analyzed.

Additional liquidity measure

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 conversion cycle days 506.40 525.10 518.67 502.60 454.75 430.63 415.38 392.45 420.55 421.72 404.99 421.13 422.13 480.19 476.95 446.61 415.81 388.31 397.72 430.34

The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally seen as favorable, as it indicates that the company is efficiently managing its working capital.

Analyzing Green Brick Partners Inc's cash conversion cycle from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes the company to convert its investments into cash flows. The cycle ranged from a low of 388.31 days on September 30, 2020, to a high of 525.10 days on September 30, 2024.

The cash conversion cycle increased significantly towards the middle of 2021 and continued to rise until the end of 2024, which may indicate challenges in managing inventory, collecting receivables, or paying liabilities efficiently. This trend could potentially lead to increased working capital requirements and liquidity concerns.

Overall, Green Brick Partners Inc's cash conversion cycle exhibited fluctuations over the period, suggesting the need for the company to closely monitor its working capital management processes to improve efficiency and cash flow generation.