Toll Brothers Inc (TOL)
Quick ratio
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 1,286,010 | 836,258 | 924,448 |
| Short-term investments | US$ in thousands | — | — | — | — | 908,949 | 343,314 | 767,566 | 684,385 | 679,643 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 157,897 | 150,000 | 110,012 |
| Quick ratio | 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 | 8.14 | 5.58 | 8.40 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($754,793K
+ $—K
+ $—K)
÷ $63,194K
= 11.94
The quick ratio measures a company's ability to meet its short-term financial obligations using its most liquid assets. A higher quick ratio typically indicates better liquidity and a stronger ability to cover current liabilities.
Looking at Toll Brothers Inc.'s quick ratio over the past eight quarters, we can observe fluctuations in the ratio. The quick ratio ranged from a low of 0.21 in Q3 2022 to a high of 0.67 in Q3 2023. The quick ratio decreased in Q2 2023 and Q4 2023, which might indicate potential liquidity concerns during those periods.
It is important to note that a quick ratio below 1 may suggest that the company could have difficulty meeting its short-term obligations with its readily available liquid assets alone. Therefore, sustained periods of quick ratios below 1 could signal a need for improved liquidity management.
Overall, Toll Brothers Inc.'s quick ratio has shown variability over the past eight quarters, and investors and stakeholders should continue to monitor this ratio to assess the company's short-term liquidity position.
Peer comparison
Jan 31, 2024