TRI Pointe Homes Inc (TPH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 868,953 | 889,664 | 681,528 | 621,295 | 329,011 |
| Short-term investments | US$ in thousands | — | 129,837 | 118,095 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 43,991 | 42,027 | 55,156 | 43,602 | 20,876 |
| Quick ratio | 19.75 | 24.26 | 14.50 | 14.25 | 15.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($868,953K
+ $—K
+ $—K)
÷ $43,991K
= 19.75
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at Tri Pointe Homes Inc.'s quick ratio over the past five years, we observe a fluctuating trend.
In 2023, the quick ratio stands at 2.60, indicating that the company has $2.60 in liquid assets available to cover each dollar of its current liabilities. This suggests a strong liquidity position, implying the company can easily meet its short-term obligations.
Comparing this to the quick ratios of the previous years, we see a slight decrease from 2.66 in 2022 to 2.60 in 2023. However, both ratios are well above 1, indicating a healthy liquidity position.
In 2021 and 2020, the quick ratio was 1.79 and 1.90 respectively, showing a moderate level of liquidity to cover short-term obligations. The ratio improved from 1.36 in 2019 to 1.79 in 2021, indicating an enhancement in the company's ability to meet short-term liabilities with liquid assets.
Overall, Tri Pointe Homes Inc. has maintained a relatively strong quick ratio over the past five years, indicating a healthy liquidity position and the ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023