Taylor Morn Home (TMHC)

Current 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
Total current assets US$ in thousands 5,186,450 4,914,340 4,872,900 4,893,540 5,022,280 4,660,760 5,184,110 4,731,220 4,906,020 4,322,670 4,533,550 4,766,090 5,425,150 4,794,550 4,770,020 4,801,500 4,826,630 4,765,200 5,056,820 4,933,850
Total current liabilities US$ in thousands 174,460 233,331 276,205 183,174 161,264 191,645 249,898 146,334 306,072 146,335 179,555 200,662 413,887 235,685 215,230 180,833 127,289 109,593 149,784 154,109
Current ratio 29.73 21.06 17.64 26.72 31.14 24.32 20.74 32.33 16.03 29.54 25.25 23.75 13.11 20.34 22.16 26.55 37.92 43.48 33.76 32.02

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,186,450K ÷ $174,460K
= 29.73

The current ratio of Taylor Morn Home has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024, ranging from a high of 43.48 on September 30, 2020, to a low of 13.11 on December 31, 2021. The current ratio is a measure of the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position and ability to cover short-term debts.

The current ratio peaked at 43.48 on September 30, 2020, showing that the company had a substantial amount of current assets to cover its current liabilities at that point. However, the ratio decreased significantly to 13.11 by December 31, 2021, indicating potential challenges in meeting short-term obligations.

The current ratio improved to 32.33 on March 31, 2023, but then declined again to 17.64 on June 30, 2024. The ratio rebounded to 29.73 by December 31, 2024. These fluctuations suggest that Taylor Morn Home may have experienced shifts in its liquidity position during this period, which could have been influenced by changes in the company's current assets and liabilities.

It is important for the company to maintain a healthy current ratio to ensure it can meet its short-term financial obligations. Management should closely monitor the components of current assets and liabilities to sustain a favorable current ratio throughout different operating conditions.