Toll Brothers Inc (TOL)
Cash ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,303,040 | 1,300,070 | 1,346,750 | 1,638,490 | 1,370,940 |
| Short-term investments | US$ in thousands | — | — | 343,314 | — | — |
| Total current liabilities | US$ in thousands | 187,905 | 106,036 | 317,411 | 155,559 | 155,202 |
| Cash ratio | 6.93 | 12.26 | 5.32 | 10.53 | 8.83 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,303,040K
+ $—K)
÷ $187,905K
= 6.93
The cash ratio of Toll Brothers Inc has fluctuated over the past five years, with a high of 12.26 in October 2023 and a low of 5.32 in October 2022. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Generally, a higher cash ratio indicates a stronger liquidity position, as seen in the higher values of 12.26 in 2023 and 10.53 in 2021. However, a sudden decrease in the ratio, as observed in 2022, may warrant further investigation into the company's cash management practices and liquidity position. Overall, monitoring the cash ratio over time can provide valuable insights into Toll Brothers Inc's ability to meet its short-term obligations using its available cash resources.
Peer comparison
Oct 31, 2024