Toll Brothers Inc (TOL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 |
| Short-term investments | US$ in thousands | — | -68,210 | — | — | — | — | — | 908,949 | 343,314 | 767,566 | 684,385 | 679,643 | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 6.93 | 6.58 | 8.08 | 11.94 | 12.26 | 14.65 | 7.43 | 23.89 | 5.32 | 9.53 | 10.73 | 13.30 | 10.53 | 6.36 | 4.87 | 8.43 | 8.83 | 4.58 | 6.99 | 5.32 |
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 of Toll Brothers Inc has varied over the past 20 quarters, indicating fluctuations in the company's ability to cover its short-term obligations with its most liquid assets. The quick ratio measures a company's ability to meet its short-term liabilities using its most liquid assets (such as cash, marketable securities, and accounts receivable).
From the data provided, we can observe that the quick ratio has generally been at healthy levels, consistently above 1, which suggests that Toll Brothers Inc has typically had an adequate level of liquid assets to cover its short-term liabilities.
The quick ratio peaked at 23.89 in January 2023, indicating a significant increase in the company's ability to meet its short-term obligations with its liquid assets. This high quick ratio could suggest strong cash reserves or efficient management of accounts receivable during that period.
On the other hand, the quick ratio hit its lowest point of 4.58 in January 2020, which may have indicated a relatively lower level of liquidity compared to its short-term obligations during that period. However, it is important to note that a quick ratio above 1 is generally considered acceptable, so even during this period, Toll Brothers Inc may have had sufficient liquidity to cover its short-term obligations.
Overall, the trend in Toll Brothers Inc's quick ratio over the past 20 quarters indicates that the company has maintained a generally healthy level of liquidity and ability to meet its short-term obligations with its liquid assets.
Peer comparison
Oct 31, 2024