TRI Pointe Homes Inc (TPH)

Current 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
Total current assets	US$ in thousands	868,953	849,039	981,567	966,298	889,664	228,137	270,124	412,703	681,528	587,405	556,483	584,665	621,295	493,585	474,545	624,129	329,011	130,262	171,516	148,782
Total current liabilities	US$ in thousands	43,991	48,977	46,713	43,439	42,027	71,569	77,732	73,547	55,156	62,912	61,096	55,741	43,602	39,288	30,411	28,534	20,876	316,528	284,036	163,032
Current ratio		19.75	17.34	21.01	22.24	21.17	3.19	3.48	5.61	12.36	9.34	9.11	10.49	14.25	12.56	15.60	21.87	15.76	0.41	0.60	0.91

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $868,953K ÷ $43,991K
= 19.75

Tri Pointe Homes Inc.'s current ratio has shown significant fluctuations over the past year. In Q4 2023, the current ratio improved to 2.60 from 2.08 in Q3 2023, reflecting a stronger liquidity position. This suggests that the company has increased its ability to cover its short-term obligations with its current assets.

Comparing Q4 2023 to the same period in the previous year, there has been a notable improvement from a current ratio of 0.93 in Q4 2022 to 2.60 in Q4 2023. This indicates a substantial enhancement in Tri Pointe Homes Inc.'s liquidity and ability to meet its short-term liabilities.

While the current ratio exhibited some volatility in the quarters leading up to Q4 2023, the current ratio consistently remained above 1, implying that the company has more than enough current assets to cover its current liabilities. However, it is important to note that a very high current ratio could also indicate inefficiency in managing current assets.

Overall, the improving trend in Tri Pointe Homes Inc.'s current ratio over the past year, particularly the significant increase in Q4 2023, suggests a healthier liquidity position and improved financial stability for the company.