PulteGroup Inc (PHM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,613,330 | 1,806,580 | 1,053,100 | 1,779,090 | 2,582,200 |
| Short-term investments | US$ in thousands | 629,582 | 516,064 | 677,207 | 947,139 | 564,979 |
| Total current liabilities | US$ in thousands | 112,639 | 117,212 | 87,578 | 87,462 | 84,505 |
| Cash ratio | 19.91 | 19.82 | 19.76 | 31.17 | 37.24 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,613,330K
+ $629,582K)
÷ $112,639K
= 19.91
Based on the data provided, PulteGroup Inc's cash ratio has shown a declining trend over the years. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, decreased from 37.24% as of December 31, 2020, to 19.91% as of December 31, 2024.
The declining trend in the cash ratio may indicate a potential liquidity concern for the company, as it suggests that PulteGroup Inc may have less cash available to cover its short-term obligations compared to previous years. This could potentially indicate a need for the company to manage its cash and cash equivalents more effectively or explore alternative sources of liquidity to meet its short-term requirements.
It is important for stakeholders to closely monitor PulteGroup Inc's cash ratio and assess the company's liquidity position to ensure it can effectively meet its financial obligations and sustain its operations in the long run.
Peer comparison
Dec 31, 2024