Toll Brothers Inc (TOL)

Current ratio

		Oct 31, 2024	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
Total current assets	US$ in thousands	1,303,040	893,422	1,030,530	754,793	1,300,070	1,033,370	761,945	791,609	1,346,750	316,471	535,038	671,365	1,638,490	946,097	714,968	949,696	1,370,940	559,348	741,222	519,793
Total current liabilities	US$ in thousands	187,905	125,417	127,541	63,194	106,036	70,517	102,489	71,187	317,411	113,705	113,688	101,615	155,559	148,655	146,932	112,619	155,202	122,189	106,018	97,653
Current ratio		6.93	7.12	8.08	11.94	12.26	14.65	7.43	11.12	4.24	2.78	4.71	6.61	10.53	6.36	4.87	8.43	8.83	4.58	6.99	5.32

October 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,303,040K ÷ $187,905K
= 6.93

The current ratio of Toll Brothers Inc has shown fluctuations over the past few years, ranging from as low as 2.78 to as high as 14.65. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.

In the most recent period, the current ratio stands at 6.93, a slight decrease from the previous period's ratio of 7.12. This suggests that the company may have slightly less liquidity to cover its short-term obligations compared to the previous period. However, the current ratio of 6.93 still indicates a healthy liquidity position.

It is noteworthy that the current ratio has been trending upwards over the past few quarters, reaching a peak of 14.65. This indicates that Toll Brothers Inc has significantly improved its ability to cover its short-term liabilities with current assets during these periods.

Overall, the current ratio of Toll Brothers Inc has demonstrated variability but generally reflects a strong liquidity position, with the company having adequate current assets to meet its short-term obligations.