Taylor Morn Home (TMHC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 798,568 | 724,488 | 832,821 | 532,843 | 326,437 |
| Short-term investments | US$ in thousands | — | 1,090 | 2,110 | 5,294 | 2,099 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 161,264 | 306,072 | 413,887 | 127,289 | 123,233 |
| Quick ratio | 4.95 | 2.37 | 2.02 | 4.23 | 2.67 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($798,568K
+ $—K
+ $—K)
÷ $161,264K
= 4.95
The quick ratio of Taylor Morrison Home Corp. has shown some variability over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio stands at 1.08, indicating that the company has $1.08 of liquid assets available to cover each dollar of its current liabilities. This suggests that the company may have a slightly lower level of liquidity compared to the previous year.
Looking back over the years, the quick ratio has generally been above 1, suggesting that Taylor Morrison has typically had an adequate level of liquid assets to meet its short-term obligations. The slight decrease in the ratio from 2022 to 2023 may warrant further investigation into the company's liquidity management and the composition of its current assets.
Overall, while the quick ratio fluctuates slightly from year to year, the company has maintained a generally healthy liquidity position, which is essential for meeting its short-term financial obligations.
Peer comparison
Dec 31, 2023