PulteGroup Inc (PHM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,806,580 | 1,053,100 | 1,779,090 | 2,582,200 | 1,224,110 |
| Total current liabilities | US$ in thousands | 117,212 | 87,578 | 87,462 | 84,505 | 51,827 |
| Current ratio | 15.41 | 12.02 | 20.34 | 30.56 | 23.62 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,806,580K ÷ $117,212K
= 15.41
The current ratio of PulteGroup Inc has exhibited fluctuations over the past five years, ranging from 3.42 in 2021 to 4.36 in 2023. The current ratio measures the company's ability to meet its short-term liabilities using its current assets. A higher current ratio indicates that the company has a greater ability to cover its short-term obligations.
In 2023, the current ratio improved to 4.36 from 3.83 in 2022, suggesting a stronger liquidity position. This increase may be attributed to higher levels of current assets compared to current liabilities, indicating a healthier financial position to fulfill short-term obligations. Furthermore, the current ratio of PulteGroup Inc in 2023 surpasses the ratios from the previous three years, implying enhanced liquidity management.
It is important to note that while a high current ratio indicates short-term liquidity strength, excessively high ratios may imply an inefficient use of assets. Therefore, it is essential for PulteGroup Inc to maintain an optimal current ratio that balances liquidity levels with effective asset utilization to support its ongoing operational and financial activities.
Peer comparison
Dec 31, 2023