TRI Pointe Homes Inc (TPH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 868,953 | 889,664 | 681,528 | 621,295 | 329,011 |
| Total current liabilities | US$ in thousands | 43,991 | 42,027 | 55,156 | 43,602 | 20,876 |
| Current ratio | 19.75 | 21.17 | 12.36 | 14.25 | 15.76 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $868,953K ÷ $43,991K
= 19.75
The current ratio of Tri Pointe Homes Inc. has shown a fluctuating trend over the past five years. It increased from 1.36 in 2019 to 1.90 in 2020, indicating an improvement in the company's short-term liquidity position. However, the ratio declined to 1.79 in 2021 before increasing again to 2.66 in 2022. The most recent data for 2023 shows a current ratio of 2.60.
Generally, a current ratio above 1 indicates that a company has more current assets than current liabilities, which suggests the company can easily meet its short-term obligations. Tri Pointe Homes Inc. has consistently maintained a current ratio above 1, reflecting a relatively strong liquidity position.
The fluctuations in the current ratio may be influenced by changes in the company's current assets and current liabilities over time. It is essential for investors and stakeholders to monitor the trend of the current ratio to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023