Taylor Morrison Home has a Cash Ratio of 0.99. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Taylor Morrison Home's Cash Ratio or its related term are showing as below:
TMHC'
s Cash Ratio Range Over the Past 10 Years
Min: 0.25 Med: 0.77 Max: 1.61
Current: 0.99
During the past 13 years, Taylor Morrison Home's highest Cash Ratio was 1.61. The lowest was 0.25. And the median was 0.77.
TMHC's Cash Ratio is ranked better than 83.5% of 103
companies
in the Homebuilding & Construction industry
Industry Median: 0.38
vs TMHC: 0.99
Taylor Morrison Home Cash Ratio Historical Data
The historical data trend for Taylor Morrison Home's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Taylor Morrison Home's Cash Ratio
For the Residential Construction subindustry, Taylor Morrison Home's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Taylor Morrison Home's Cash Ratio Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Taylor Morrison Home's Cash Ratio falls into.
Taylor Morrison Home Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Taylor Morrison Home's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Taylor Morrison Home (NYSE:TMHC) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Taylor Morrison Home Cash Ratio Related Terms
Thank you for viewing the detailed overview of Taylor Morrison Home's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Taylor Morrison Home (Taylor Morrison Home) Business Description
Taylor Morrison Home is an American residential construction company that builds single-family homes and communities throughout California, Arizona, Texas, Illinois, Colorado, Florida, Georgia, and North Carolina. Taylor Morrison also reports via a mortgage operations segment that provides financing services for its homebuyers. It constructs various types of single-family homes, from entry-level to luxury move-up homes, as well as active adult communities. The majority of the company's revenue is derived from its construction projects, with the West and central operating regions leading the way.
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