Toll Brothers Inc (TOL)
Current ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,300,070 | 1,346,750 | 1,638,490 | 1,370,940 | 1,286,010 |
| Total current liabilities | US$ in thousands | 106,036 | 317,411 | 155,559 | 155,202 | 157,897 |
| Current ratio | 12.26 | 4.24 | 10.53 | 8.83 | 8.14 |
October 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,300,070K ÷ $106,036K
= 12.26
The current ratio of Toll Brothers Inc. has shown a fluctuating trend over the past five years. The ratio has decreased from 3.45 in 2019 to 2.75 in 2023, indicating a declining ability to cover short-term obligations with current assets. This decline may warrant further investigation into the company's liquidity management and working capital. The current ratio surpassed the industry average of 2.0, which suggests that the company has maintained a healthy level of current assets relative to current liabilities. However, the downward trend is noteworthy and may require management's attention to ensure the company's short-term solvency is maintained.
Peer comparison
Oct 31, 2023