Thor Industries Inc (THO)
Liquidity ratios
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.69 | 1.63 | 1.74 | 1.56 | 1.39 |
| Quick ratio | 0.64 | 0.57 | 0.66 | 0.69 | 0.74 |
| Cash ratio | 0.32 | 0.26 | 0.18 | 0.25 | 0.36 |
Thor Industries Inc's liquidity ratios have shown some fluctuations over the past five years.
The current ratio has generally been above 1, indicating that the company has sufficient current assets to cover its current liabilities. The ratio has improved over the years, reaching 1.69 in 2024 from 1.39 in 2020. This suggests that Thor Industries has become more efficient in managing its short-term obligations.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also improved over the years, although it has fluctuated slightly. In 2024, the quick ratio stood at 0.64, indicating that the company may not be able to cover its current liabilities with its most liquid assets alone.
The cash ratio, which is the most conservative liquidity measure, has also shown fluctuations but has generally been below 1. This means that Thor Industries may not have enough cash on hand to cover its current liabilities, with the ratio dipping as low as 0.18 in 2022.
In summary, while Thor Industries Inc has shown improvements in its liquidity ratios over the past five years, the company may still need to closely monitor its ability to meet short-term obligations, especially in terms of cash availability.
Additional liquidity measure
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 46.26 | 49.76 | 42.11 | 38.32 | 30.38 |
The cash conversion cycle of Thor Industries Inc has shown fluctuations over the past five years. In July 2024, the company's cash conversion cycle decreased to 46.26 days from 49.76 days in July 2023. This indicates that the company was able to manage its cash, inventory, and receivables more efficiently in the most recent year compared to the previous year.
Looking further back, the cash conversion cycle was 42.11 days in July 2022 and 38.32 days in July 2021, showing a decreasing trend during those years. However, in July 2020, the cycle slightly increased to 30.38 days before starting to rise again in the subsequent years.
Overall, the fluctuations in Thor Industries Inc's cash conversion cycle suggest varying efficiency in managing its working capital components. While the recent decrease is positive, the company may need to focus on maintaining or further improving this efficiency to optimize its cash flow operations.