TRI Pointe Homes Inc (TPH)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	4,235,120	4,230,980	4,103,320	4,492,010	4,431,070	4,381,240	4,292,030	4,249,790	4,232,960	4,028,970	3,918,160	3,832,930	3,853,270	3,810,810	3,756,220	3,693,690	3,594,990	3,556,380	3,596,020	3,928,490
Total current liabilities	US$ in thousands	68,228	216,281	339,150	344,770	518,364	564,420	503,904	493,819	505,358	229,703	254,417	260,589	550,867	535,755	267,118	250,554	446,430	426,211	160,014	658,804
Current ratio		62.07	19.56	12.10	13.03	8.55	7.76	8.52	8.61	8.38	17.54	15.40	14.71	6.99	7.11	14.06	14.74	8.05	8.34	22.47	5.96

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,235,120K ÷ $68,228K
= 62.07

TRI Pointe Homes Inc's current ratio has shown fluctuations over the past few years. The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger liquidity position.

In the provided data, the current ratio ranged from a low of 5.96 on March 31, 2020, to a peak of 62.07 on December 31, 2024. The current ratio significantly increased between June 30, 2020, and December 31, 2024, indicating an improvement in the company's liquidity position.

The company experienced variations in its current ratio, with some quarters showing ratios above 15, indicating a solid ability to cover its short-term obligations. However, there were periods, such as on September 30, 2021, where the current ratio dropped to 7.11, suggesting potential liquidity challenges.

Overall, while the current ratio of TRI Pointe Homes Inc has fluctuated over the years, it generally indicates that the company has the ability to meet its short-term obligations with its current assets. Investors and stakeholders should continue to monitor the current ratio to assess the company's liquidity position accurately.