TRI Pointe Homes Inc (TPH)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 129,837 | 132,998 | 131,399 | 122,366 | 118,095 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 19.75 | 17.34 | 21.01 | 22.24 | 24.26 | 5.05 | 5.17 | 7.28 | 14.50 | 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($868,953K
+ $—K
+ $—K)
÷ $43,991K
= 19.75
The quick ratio of Tri Pointe Homes Inc. has shown fluctuations over the past two years. In Q4 2022, the quick ratio was significantly low at 0.93, indicating a potential liquidity concern. However, there has been a consistent improvement since then, with the ratio increasing to 1.12 in Q1 2022 and further reaching 2.60 in Q4 2023, reflecting a strong liquidity position.
The company's quick ratio has generally remained above 1, indicating that Tri Pointe Homes Inc. has an adequate level of liquid assets to cover its current liabilities in the short term. The trend of increasing quick ratios over the quarters suggests an improvement in the company's ability to meet its short-term obligations efficiently.
It is important to note that a quick ratio above 1 is generally considered healthy, as it indicates the company's ability to pay off its current liabilities without relying heavily on inventory. Tri Pointe Homes Inc.'s recent quick ratio values above 2 further signify a robust liquidity position, potentially driven by effective management of current assets and liabilities.
Overall, the upward trend in Tri Pointe Homes Inc.'s quick ratio over the quarters is a positive indicator of the company's improving liquidity position and its ability to meet short-term financial obligations effectively.
Peer comparison
Dec 31, 2023