Toll Brothers Inc (TOL)
Quick ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 187,905 | 106,036 | 317,411 | 155,559 | 155,202 |
| Quick ratio | 6.93 | 12.26 | 5.32 | 10.53 | 8.83 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,303,040K
+ $—K
+ $—K)
÷ $187,905K
= 6.93
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better liquidity and implies that the company can easily cover its current liabilities.
Looking at Toll Brothers Inc's quick ratio over the past five years, there has been some fluctuation. In 2024, the quick ratio stands at 6.93, which indicates that the company has $6.93 in liquid assets available to cover each $1 of current liabilities. This suggests a strong liquidity position.
Comparing this to the quick ratios in the previous years, we see a significant increase from 2023 to 2024, where the quick ratio declined from 12.26 to 6.93. The sharp decrease in the quick ratio from 2023 to 2024 could indicate a potential decrease in liquid assets relative to current liabilities.
In 2022 and 2021, the quick ratios were 5.32 and 10.53, respectively, showing a fluctuation in liquidity levels during these years. In 2020, the quick ratio was 8.83, indicating a healthy liquidity position.
Overall, while the current quick ratio of Toll Brothers Inc is strong in 2024, investors and stakeholders may want to closely monitor any further changes in the company's liquidity position to ensure it can continue to meet its short-term obligations effectively.
Peer comparison
Oct 31, 2024