TRI Pointe Homes Inc (TPH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 970,045 | 868,953 | 889,664 | 681,528 | 621,295 |
| Short-term investments | US$ in thousands | — | — | 129,837 | 118,095 | — |
| Total current liabilities | US$ in thousands | 68,228 | 518,364 | 505,358 | 550,867 | 446,430 |
| Cash ratio | 14.22 | 1.68 | 2.02 | 1.45 | 1.39 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($970,045K
+ $—K)
÷ $68,228K
= 14.22
The cash ratio of TRI Pointe Homes Inc has shown a generally positive trend over the period from December 31, 2020, to December 31, 2024. The company's cash ratio increased steadily from 1.39 in 2020 to 14.22 in 2024, with some fluctuation in between. A cash ratio above 1 indicates that the company has sufficient cash and cash equivalents to cover its current liabilities.
The significant rise in the cash ratio in 2024 to 14.22 suggests a substantial increase in the company's cash holdings relative to its current liabilities, indicating a strong liquidity position. It is important to note that a very high cash ratio could imply an inefficient use of assets, as having excessive cash on hand might not be the most productive use of resources. Overall, TRI Pointe Homes Inc appears to have maintained a healthy cash position over the analyzed period, which could potentially help the company weather unforeseen financial challenges or capitalize on strategic opportunities.
Peer comparison
Dec 31, 2024