Taylor Morn Home (TMHC)

Quick 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	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
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick 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

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 fluctuation over the past eight quarters, ranging from a low of 0.68 in Q2 2022 to a high of 1.68 in Q2 2023. Generally, a quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities.

In Q4 2023, the quick ratio decreased slightly to 1.08 from 1.14 in Q3 2023, which may signify a slight reduction in the company's ability to meet its short-term obligations using its most liquid assets. However, the ratio remains above 1, indicating that Taylor Morrison Home Corp. still has an adequate level of liquidity.

In comparison to Q2 2023, where the quick ratio was at its peak of 1.68, the current ratio in Q4 2023 is lower. This suggests that the company may have utilized some of its liquid assets to address other financial needs or that there has been a shift in the composition of its current assets.

Overall, while the slight decrease in the quick ratio from the previous quarter could indicate a small tightening in liquidity, Taylor Morrison Home Corp. continues to maintain a healthy level of liquidity to meet its short-term financial obligations. It would be important to monitor future trends in the quick ratio to assess the company's ongoing liquidity position.