TRI Pointe Homes Inc (TPH)

Liquidity ratios

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
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
Quick ratio 14.22 3.13 1.45 2.74 1.68 1.50 1.95 1.96 2.02 1.57 1.58 2.05 1.45 1.10 2.08 2.33 1.39 1.16 2.97 0.95
Cash ratio 14.22 3.13 1.45 2.74 1.68 1.50 1.95 1.96 2.02 1.57 1.58 2.05 1.45 1.10 2.08 2.33 1.39 1.16 2.97 0.95

TRI Pointe Homes Inc's liquidity ratios show a strong ability to meet short-term obligations and cover immediate cash needs.

The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has shown fluctuations over the quarters but generally remains well above 1. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is favorable. The current ratio peaked at 62.07 on December 31, 2024, suggesting a significant increase in liquidity at that point.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. TRI Pointe Homes Inc's quick ratio values have been generally healthy, with most quarters showing ratios above 1. This indicates that the company has an adequate level of highly liquid assets to cover its short-term liabilities without relying on selling inventory.

The cash ratio, which is the most conservative liquidity ratio, focuses solely on the company's ability to cover its current liabilities with its cash and cash equivalents. The trend in TRI Pointe Homes Inc's cash ratio mirrors that of the quick ratio, indicating that the company maintains a solid cash position relative to its short-term obligations.

Overall, the liquidity ratios of TRI Pointe Homes Inc suggest that the company is in a good position to meet its short-term financial commitments and operating expenses, with a healthy level of liquid assets to support its operations.

Additional liquidity measure

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
Cash conversion cycle days 334.54 360.90 392.70 415.35 422.81 408.96 367.05 353.27 363.40 443.78 431.84 402.82 372.89 397.21 406.65 422.57 419.45 417.19 431.84 461.89

TRI Pointe Homes Inc's cash conversion cycle, a measure of how long it takes for the company to convert its investments in inventory into cash flows from sales, has shown fluctuations over the past few years. The cycle decreased from 461.89 days as of March 31, 2020, to 372.89 days as of December 31, 2021, indicating an improvement in the efficiency of the company's working capital management. However, there was a slight uptick to 443.78 days by September 30, 2022, before dropping again.

The company experienced its shortest cash conversion cycle of 334.54 days as of December 31, 2024, suggesting more efficient working capital management and increased liquidity. Overall, TRI Pointe Homes Inc has shown fluctuations in its cash conversion cycle, but a decreasing trend in recent periods, indicating potential improvements in managing its inventory and receivables to generate cash more quickly. Continued monitoring of this metric will be essential to assess the company's ongoing efficiency in working capital management.