Green Brick Partners Inc (GRBK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 179,756 | 76,588 | 77,166 | 19,479 | 33,269 |
| Short-term investments | US$ in thousands | — | 74,224 | 1,530 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 195,150 | 17,395 | 738 | 106,687 | 164,642 |
| Quick ratio | 0.92 | 8.67 | 106.63 | 0.18 | 0.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,756K
+ $—K
+ $—K)
÷ $195,150K
= 0.92
The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities.
Green Brick Partners Inc's quick ratio has shown significant fluctuations over the past five years. In 2023, the quick ratio improved to 0.93 from 0.40 in 2022, indicating a notable enhancement in the company's short-term liquidity position. This suggests that Green Brick Partners Inc has a better ability to cover its short-term liabilities with its quick assets.
The improvement in the quick ratio from 2022 to 2023 could be attributed to various factors such as better management of inventory, accounts receivable, or an increase in cash reserves. However, it is essential to note that a quick ratio of less than 1 may indicate that the company may struggle to meet its short-term obligations without relying on potentially less liquid assets.
Overall, the increasing trend in Green Brick Partners Inc's quick ratio from 2020 to 2023 reflects a positive liquidity position, indicating an enhanced ability to meet short-term financial commitments with its readily available assets.
Peer comparison
Dec 31, 2023