Tractor Supply Company (TSCO)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 397,071 202,502 878,030 1,341,760 84,241
Short-term investments US$ in thousands 558
Total current liabilities US$ in thousands 2,177,080 2,376,210 2,064,840 1,743,800 1,247,600
Cash ratio 0.18 0.09 0.43 0.77 0.07

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($397,071K + $—K) ÷ $2,177,080K
= 0.18

Tractor Supply Company's cash ratio has exhibited fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2023, the cash ratio of Tractor Supply Company stood at 0.18, indicating that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year when the cash ratio was 0.09. The increase in the cash ratio could suggest better liquidity management or an increase in cash reserves relative to its short-term obligations.

Looking back at 2021, the company had a relatively higher cash ratio of 0.43, which signifies a stronger liquidity position compared to the most recent year. In 2020, Tractor Supply Company's cash ratio was notably higher at 0.77, indicating a significant improvement in liquidity and the ability to easily cover short-term liabilities with cash on hand.

However, in 2019, the company had a cash ratio of 0.07, the lowest among the years analyzed, suggesting a relatively weaker liquidity position. It is essential for investors and stakeholders to monitor changes in Tractor Supply Company's cash ratio over time to assess the company's ability to meet its short-term obligations and manage liquidity effectively.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Tractor Supply Company
TSCO
0.18
Fastenal Company
FAST
0.33
Sherwin-Williams Co
SHW
0.04