PulteGroup Inc (PHM)

Cash ratio

		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 and cash equivalents	US$ in thousands	1,613,330	1,397,660	1,392,900	1,719,560	1,806,580	1,848,450	1,728,710	1,278,020	1,053,100	231,301	662,780	1,145,010	1,779,090	1,568,320	1,663,270	1,579,590	2,582,200	2,067,280	1,658,530	1,816,780
Short-term investments	US$ in thousands	629,582	556,664	569,387	570,839	516,064	414,360	432,481	420,638	677,207	3,183	553,789	510,275	947,139	601,408	581,150	495,049	564,979	400,067	394,288	363,854
Total current liabilities	US$ in thousands	112,639	3,290,140	3,218,480	3,243,090	117,212	2,966,620	2,876,680	2,960,540	87,578	3,166,340	2,666,440	3,153,200	87,462	2,771,770	2,609,070	2,346,830	84,505	2,096,990	2,079,840	2,167,050
Cash ratio		19.91	0.59	0.61	0.71	19.82	0.76	0.75	0.57	19.76	0.07	0.46	0.52	31.17	0.78	0.86	0.88	37.24	1.18	0.99	1.01

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

The cash ratio of PulteGroup Inc has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024.

Initially, the cash ratio was relatively stable around 1.0, indicating that the company had just enough cash to cover its short-term obligations. However, there was a significant spike in the ratio as of December 31, 2020, reaching 37.24, suggesting a substantial increase in the company's cash holdings compared to its current liabilities.

Subsequently, the cash ratio declined gradually but remained at relatively healthy levels above 0.5 until September 30, 2022, when it dropped sharply to 0.07. This significant decrease implies a potential liquidity strain for the company during that period. However, the cash ratio recovered slightly in the following quarters but remained below 1.0, indicating a continued tight cash position relative to its short-term obligations.

From December 31, 2022, to December 31, 2024, the cash ratio fluctuated between 0.57 and 0.76, signaling ongoing challenges in maintaining a robust cash position to cover immediate liabilities.

Overall, the cash ratio of PulteGroup Inc reflects varying levels of liquidity over the analyzed period, with instances of significant improvements and declines in its ability to meet short-term financial commitments using available cash resources. It suggests the company may need to manage its cash holdings effectively to ensure sufficient liquidity for its operations.