Taylor Morn Home (TMHC)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	798,568	613,811	1,227,260	877,717	724,488	329,244	378,340	569,249	832,821	373,407	366,267	392,500	532,843	547,916	674,685	507,761	326,437	222,049	196,529	171,982
Short-term investments	US$ in thousands	—	—	—	—	1,090	306,081	4,918	420	2,110	1,998	3,687	4,985	5,294	6,800	7,212	8,711	2,099	2,861	3,055	3,470
Total current liabilities	US$ in thousands	161,264	191,645	249,898	146,334	306,072	146,335	179,555	200,662	413,887	235,685	215,230	180,833	127,289	109,593	149,784	154,109	123,233	56,051	79,458	59,114
Cash ratio		4.95	3.20	4.91	6.00	2.37	4.34	2.13	2.84	2.02	1.59	1.72	2.20	4.23	5.06	4.55	3.35	2.67	4.01	2.51	2.97

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($798,568K + $—K) ÷ $161,264K
= 4.95

The cash ratio of Taylor Morrison Home Corp. has fluctuated over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations.

From Q4 2022 to Q2 2023, there was an upward trend in the cash ratio, reaching a peak of 1.52 in Q2 2023, indicating an improvement in the company's liquidity position. However, in Q3 2023, the cash ratio decreased to 0.98, but it remained above 1, still suggesting a strong ability to cover short-term liabilities.

While the Q4 2023 cash ratio of 0.93 decreased further compared to the previous quarter, it is important to note that the ratio is still above 0.75, which is considered acceptable in most industries. Overall, Taylor Morrison Home Corp. has maintained a relatively healthy cash position throughout the periods analyzed, indicating a prudent approach to managing its short-term liquidity needs.