Taylor Morn Home (TMHC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,022,280 | 4,906,020 | 5,425,150 | 4,826,630 | 3,550,780 |
| Total current liabilities | US$ in thousands | 161,264 | 306,072 | 413,887 | 127,289 | 123,233 |
| Current ratio | 31.14 | 16.03 | 13.11 | 37.92 | 28.81 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,022,280K ÷ $161,264K
= 31.14
The current ratio of Taylor Morrison Home Corp. has shown a decreasing trend from 2019 to 2021, where it decreased from 6.62 to 5.11. However, in 2022 and 2023, there was a slight improvement as the current ratio increased to 5.36 and 5.62, respectively.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign for short-term liquidity. Taylor Morrison Home Corp. has consistently maintained a current ratio well above 1 over the years, indicating its ability to meet short-term obligations.
While the downward trend in the current ratio from 2019 to 2021 may raise concerns about liquidity management, the slight improvement in 2022 and 2023 suggests a stabilization of the company's short-term liquidity position. It is important for investors and analysts to continue monitoring the current ratio trend to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023