Thor Industries Inc (THO)
Liquidity ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.69 | 1.65 | 1.75 | 1.63 | 1.63 | 1.79 | 1.95 | 1.85 | 1.74 | 1.70 | 1.68 | 1.58 | 1.56 | 1.46 | 1.49 | 1.40 | 1.39 | 1.65 | 1.38 | 1.38 |
| Quick ratio | 0.64 | 0.58 | 0.54 | 0.57 | 0.57 | 0.63 | 0.58 | 0.64 | 0.66 | 0.76 | 0.73 | 0.70 | 0.69 | 0.55 | 0.54 | 0.62 | 0.74 | 0.71 | 0.55 | 0.55 |
| Cash ratio | 0.32 | 0.21 | 0.21 | 0.25 | 0.26 | 0.21 | 0.19 | 0.18 | 0.18 | 0.17 | 0.16 | 0.17 | 0.25 | 0.15 | 0.11 | 0.21 | 0.36 | 0.51 | 0.16 | 0.16 |
Thor Industries Inc's liquidity ratios have displayed some fluctuation over the past few years. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, has ranged between 1.40 and 1.95. The ratio has generally been above 1, suggesting that Thor has had an excess of current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has been more volatile, ranging from 0.54 to 0.76. This indicates that Thor may have struggled at times to meet its short-term obligations without relying on inventory.
The cash ratio, which provides insight into the company's ability to cover its current liabilities with its cash and cash equivalents, has varied between 0.11 and 0.51. This ratio suggests that Thor has had differing levels of cash on hand relative to its current liabilities, with a ratio below 0.2 indicating potential liquidity challenges.
Overall, while Thor Industries Inc has shown some fluctuations in its liquidity ratios, the company generally maintains a reasonable ability to meet its short-term obligations. However, management should continue to monitor and manage liquidity effectively to ensure the company's financial health and stability.
Additional liquidity measure
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 46.26 | 51.95 | 56.30 | 54.34 | 49.76 | 56.29 | 49.90 | 48.38 | 42.11 | 44.24 | 44.77 | 47.07 | 38.32 | 41.67 | 49.66 | 41.13 | 30.38 | 32.57 | 37.24 | 40.81 |
The cash conversion cycle of Thor Industries Inc has shown fluctuations over the past several reporting periods. The company's cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales and services.
From Jan 2020 to Jul 2024, Thor Industries Inc has maintained its cash conversion cycle within a range of 30.38 days to 56.30 days, indicating variability in the efficiency of its working capital management. The lower the number of days, the more efficient the company is in managing its cash flows and working capital.
The trend in the cash conversion cycle shows that there have been periods of improvement and deterioration in the company's working capital efficiency. For example, in Oct 2021, the cash conversion cycle was at its lowest at 37.24 days, indicating strong working capital management. However, in Jan 2024, the cycle increased to 56.30 days, signifying a potential delay in converting investments into cash flows.
Overall, Thor Industries Inc should focus on analyzing the factors contributing to fluctuations in its cash conversion cycle to optimize its working capital management and improve operational efficiency.