Taylor Morn Home (TMHC)

Taylor Morrison Home Corp.'s liquidity ratios indicate a consistently strong liquidity position over the past five years. The current ratio has remained relatively high, ranging from 5.11 to 6.62, reflecting the company's ability to cover its short-term obligations with current assets.

The quick ratio, which excludes inventory from current assets, demonstrates the company's ability to meet its short-term liabilities using its most liquid assets. Despite some fluctuations, the quick ratio has generally been above 1.0, indicating a healthy level of liquidity.

The cash ratio, which measures the ability to cover short-term obligations using cash and cash equivalents, has also displayed a strong trend, ranging from 0.81 to 1.05. This suggests that Taylor Morrison Home Corp. holds sufficient cash to meet its immediate financial obligations.

Overall, the company's liquidity ratios suggest sound financial health and a strong ability to manage short-term liquidity needs, which is essential for maintaining operations and pursuing growth opportunities.

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Additional liquidity measure

The cash conversion cycle of Taylor Morrison Home Corp. has exhibited fluctuations over the past five years. In 2023, the cash conversion cycle increased to 351.23 days compared to 312.11 days in 2022. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during 2023.

In 2021, the cash conversion cycle was at 328.98 days, showing a slight improvement from the previous year. However, in 2020 and 2019, the cycle was higher at 373.05 days and 359.65 days, respectively. This suggests that Taylor Morrison Home Corp. has made efforts to manage its cash conversion efficiency better in recent years.

Overall, the trend in the cash conversion cycle of Taylor Morrison Home Corp. indicates fluctuations, with some improvements in certain years but also periods of increased days in the cycle. Further analysis of the company's working capital management practices and operational efficiency may provide insights into the factors impacting its cash conversion cycle.