Thor Industries Inc (THO)
Quick ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 501,316 | 441,232 | 311,553 | 445,852 | 538,519 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 502,301 | 543,865 | 848,814 | 796,489 | 588,069 |
| Total current liabilities | US$ in thousands | 1,567,020 | 1,716,480 | 1,755,920 | 1,794,780 | 1,515,280 |
| Quick ratio | 0.64 | 0.57 | 0.66 | 0.69 | 0.74 |
July 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($501,316K
+ $—K
+ $502,301K)
÷ $1,567,020K
= 0.64
The quick ratio of Thor Industries Inc has been fluctuating over the past five years, as indicated by the following values: 0.64 (2024), 0.57 (2023), 0.66 (2022), 0.69 (2021), and 0.74 (2020). The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1.0 suggests that the company may have difficulty meeting its current liabilities in the short term, as its liquid assets may not be sufficient to cover these obligations.
The decreasing trend in Thor Industries Inc's quick ratio over the years indicates a potential weakening in the company's short-term liquidity position. A quick ratio below 1.0 may raise concerns among investors and creditors about the company's ability to manage its short-term financial obligations.
It is important for Thor Industries Inc to monitor and manage its liquidity position effectively to ensure that it can cover its short-term liabilities without facing financial distress. Management should consider strategies to improve the quick ratio, such as increasing cash holdings or reducing current liabilities, to enhance the company's overall financial stability.
Peer comparison
Jul 31, 2024